Final settlement often refers to a settlement agreement, which is an agreement to some resolution of the dispute and to stop future litigation. Final settlements differ depending on what the parties negotiate. The agreements often include for one party to pay the other or stop conducting specific actions in exchange for the other party to waive all future rights to litigate the issue. Most civil cases end in settlement as it reduces litigation costs for the parties and reduces cases on court dockets.
Final settlements may also refer to the satisfaction and closing of a debt or business account after a final payment.
In estates, final settlement refers to finishing the execution of a will or distribution of an estate.
[Last updated in August of 2021 by the Wex Definitions Team]