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family settlement agreement what is a family settlement agreement or memorandum of family settlement is a document or a contract which is signed between members of a family in which they agree to divide the joint assets of the family among themselves for example if the father passes away without leaving a will then he will leave a lot of property for his other family for his sons for his daughters and for his wife now since the property has not been specifically allotted to any particular son daughter or the wife they all will be considered considered as class 1 heirs within the meaning of the hindu succession act means that since the entire property is considered as one pool each the wife the son the daughter all children they will have equal shares in the entire property as a whole now let us suppose heirs decide that the time has come to allocate specific properties to each one of them in short from commonality of undivided interest they want to specifically demarcate their respect