Family
The family has already agreed — put it on paper?
Who keeps what, recorded while everyone still agrees — so it never has to be argued.
Memorandum of Family Settlement
Records a family arrangement ALREADY arrived at and acted upon — siblings or family members who divided the family's properties, funds and assets amicably and now want the division on paper so it stays settled. Drafted strictly in the memorandum posture the Supreme Court's family-arrangement doctrine protects: past tense throughout, an express recital that the arrangement was bona fide and made in recognition of each member's antecedent rights, a complete numbered schedule of who holds what, mutual acceptance and releases, and the operative sentence that the Memorandum records and evidences the arrangement without itself creating or transferring any right. Members beyond two join through additional parties, in the preamble and the signature blocks. It is NOT an instrument of partition or settlement: a document by which the family divides property FOR THE FIRST TIME, or which contains words of transfer, attracts partition or settlement stamp duty and — where immovable property is involved — compulsory registration, and should go to counsel; likewise this is not the instrument for a contested division, for giving one person's asset to another (see the Gift Deed), or for what happens after a death (see the Legal Heir Declaration, and in time the Will).
What makes it hold
What this document contains
7 clauses every memorandum of family settlement carries, plus 3 you can add.
- 01
Introduction
The preamble: the members with the recital wording their entityType selects (further members through additionalParties), and the recitals that carry the whole legal posture — one family, an arrangement already made bona fide and acted upon, now being recorded. The recitals are past-tense by design; nothing in them agrees to divide anything.
- 02
The Arrangement Recorded
The load-bearing clause: the members CONFIRM the arrangement already made and acted upon, and the Memorandum states expressly that it records and evidences that arrangement without itself creating, declaring, assigning, limiting or extinguishing any right — the sentence that keeps a memorandum of a past arrangement where the law places it.
- 03
Schedule of Allotments
Who holds what under the arrangement: one numbered entry per member, past tense — allotted, and since held and enjoyed. The completeness of this schedule is what prevents the next dispute; every member should appear, even one whose allotment is nil (recorded as such).
- 04
Possession and Enjoyment
Each member's possession of their allotment confirmed by all — the acted-upon fact that gives a family arrangement its force, stated as a fact rather than promised as a future act.
- 05
Mutual Acceptance and Releases
The peace clause: every member accepts the allotments as final and in full satisfaction of their claims in the properties covered, gives up every claim against what the others hold, and agrees not to dispute the arrangement — the estoppel courts enforce against a member who later resiles.
- 06
Governing Law and Dispute Resolution
Applicable law, jurisdiction, and dispute resolution mechanism (courts or arbitration under Indian law).
- 07
General Provisions
The closing machinery for a memorandum: the record is complete as recorded, corrections in writing signed by all members, notices, severability, counterparts, who bears the stamp duty (shared equally by default — it is the family's record), and the relationship confined to members of a family recording their arrangement.
Optional clauses
Papers and Documents
Who holds the originals: papers relating to one member's allotment go to that member; papers concerning more than one member's assets stay with a named custodian who must produce them on reasonable request.
Worth adding when: Title papers, passbooks, share certificates or other originals need a stated home — usually wherever immovable property or jointly documented assets are involved
Records and Cooperation
The administrative follow-through: every member signs the applications and forms needed to have the recorded arrangement reflected in mutation entries and in society, bank, company, depository and other records — administrative acts giving effect to what stands recorded, each member bearing their own incidental costs.
Worth adding when: Mutation entries, society records, bank accounts, shareholdings or other registrations still show the old position and need to be brought in line with the arrangement
Custom Clause
A free-form clause for bespoke provisions not covered by standard clauses. Use clauseId 'custom-clause-1', 'custom-clause-2', etc. to add multiple.
What the law requires
- The family-arrangement doctrine, and why the tense matters
- Kale v. Deputy Director of Consolidation settles the frame: a family arrangement to preserve peace may be oral; it operates in recognition of the members' ANTECEDENT rights rather than as a transfer; a memorandum prepared AFTER the arrangement, as a record of what was agreed, does not require registration; and a member who has taken a benefit under it is estopped from resiling. Every clause of this type is drafted inside that frame — confirm, record, release — and never 'hereby divides', 'transfers' or 'conveys'.
- Kale v. Deputy Director of Consolidation, AIR 1976 SC 807; Tek Bahadur Bhujil v. Debi Singh Bhujil, AIR 1966 SC 292
- The registration line
- Section 17(1)(b) of the Registration Act catches instruments that themselves create, declare, assign, limit or extinguish rights in immovable property worth one hundred rupees and upwards. A memorandum recording a completed past arrangement sits outside it; a document that is itself the source of the division sits inside it. If the family has NOT yet agreed, or wants the document to BE the division, this is not the instrument — that is a partition or settlement deed, registrable and differently stamped, and a matter for counsel.
- Section 17(1)(b) and Section 49, Registration Act 1908
- Completeness is the protection
- Family arrangements fail in practice through omission: a member left out, an asset unlisted, a nil allotment left unstated. Ask expressly about every member of the family and record even a nil allotment in the schedule — the mutual releases only settle what the schedule covers, and silence about a member or an asset is an invitation to the suit this instrument exists to prevent.
- The completeness discipline of the Schedule of Allotments and Mutual Releases clauses of this form