Definition - What does Final Settlement mean?
A final settlement is the last payment of an order against a person to pay a set amount of money to another person. The final settlement does not have to come about as the result of a court case. It can be gained through mutual agreement at the end of a successfully completed transaction. If the transaction was not successfully completed, it could lead to court interaction. There may be a number of revised settlement offers that pass between parties before one is agreed on.
Justipedia explains Final Settlement
Final settlements are often found in legal cases where assets and property are in dispute or where financial compensation is the only resolution sought in the action. Any insurance claim would be considered in terms of a settlement, as would any agreement that comes about as part of a divorce between spouses.