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Property Disputes and Family Settlements | division

Wars over wealth take place at every level, from low-income families to ultra-rich families, making property disputes a common occurrence in India. Property disputes are a common occurrence in India. The obvious solution for most is to drag the courts rather than resolve the matter. What most people don’t realize, however, is that in addition to being a difficult and costly process, courts in no way guarantee a satisfactory resolution. Hence, it is advisable to opt for a family settlement. Here are some points that will help you understand the concept of settlement better.
Unique selling proposition:

For those who want to avoid the long, public and messy court battles with a quicker, more cohesive way to resolve disputes. Process: A family settlement is a settlement process where a third person, usually a lawyer or a senior family member, helps the family reach a mutually acceptable resolution of a property dispute. A family settlement cannot be a legal document involving the distribution of property; It can also be a series of documents stating the property rights of the members of each family. A settlement instrument is neither a gift nor a transfer of property as per the provisions of the Income Tax Act. Therefore, separate transfer of property documents will have to be prepared in addition to the family agreement to bring about the actual transfer. The transfer of property is decided while the tax fact has to be taken into account.

Partition through Family Settlement Agreement:
A family settlement is an agreement between family members, usually done to avoid any court disputes and to divide the family property by mutual understanding. A family settlement agreement is made in the same format as a partition deed. In addition, a family settlement agreement does not require registration and stamping.

The family settlement agreement must be signed voluntarily by all members of the family, without any fraud, coercion or coercion from any family member. Further, it is not necessary that the family settlement agreement has to be drawn up in a written document and can be executed by agreement or mutual understanding between the family members.

What is the family system?
In short, a family settlement is an agreement where family members mutually work out how property should be distributed among themselves. All parties must be related to each other and claim a share of the disputed property. The latter need not be limited to immovable property, but can also cover movable assets such as jewelery or money in bank accounts. Family settlement is usually used to settle common property or joint property, as opposed to personal or self-acquired property.

Can the family settlement of property acquired by itself take place?
Self-acquired property settlement cannot be executed during the lifetime of a person who acquired it, but at the same time, the self-acquired property automatically becomes part of the ancestral property on the death of such person. However, the individual can assign the self-acquired property to any person as per his wish.

Partition / Settlement Suits in Family Disputes in India.
Now, before filing a case in the court for division of property, legal notice should be sent to the other co-owners of the property regarding the division/settlement of the property of the family. The legal notice for a partition suit should state each co-owner’s shares, full details of the property in dispute and the necessary action to be taken. If the co-owners do not respond to the legal notice or send an insufficient reply, a partition suit may be filed in court.

A partition suit is a court case filed when none of the co-owners agree to the terms and conditions of property division, and one or more co-owners wish to divide the property according to their shares. A suit for partition is filed in a court that has jurisdiction over the area in which the property is situated.

The court first determines whether the person who filed the partition suit has a rightful claim in the property. A share is established and no additional inquiries are required, the court can assign individual ownership of the property to the co-owners. If the property cannot be distributed only on partition suit, the court may order an inquiry and pass a preliminary or preliminary judgment appointing a commissioner who will evaluate the property and submit a report. The court then determines each co-owner’s share based on the report and divides the property according to each co-owner’s share.

Legal requirements:
Is not enough to reach consensus; There are certain legal formalities that must be completed to ensure that the contract is valid. The settlement document must be signed by all family members involved. A missing signature can easily become ground for challenging the document in a court of law later.

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