Why is family settlement better than court settlement? What is a family settlement? \tIt refers to the adjustment that family members make in order avoid court disputes and amicably divide the family property with shared understanding. \tThe parties must be related to each other and have a right to a share of the said property. \tThe latter is not just limited to real estate, but can also claim his/her right on the movable assets like jewellery or money in bank accounts.