Setting up of Family Courts and its functioning lies within the domain of State Government in consultation with their respective High Courts. The Family Courts Act, 1984 provides for the establishment of Family Courts by the State Governments in consultation with the High Courts to promote conciliation and secure speedy settlement of disputes relating to marriage and family affairs. As per the Act, it is mandatory for the State Government to set up a Family Court for every city or a town whose population exceeds one million. In other areas of the States, the Family Courts may be set up if the State Governments deems it necessary.
The 14th Finance Commission had recommended setting up 235 Family Courts during 2015-2020 in districts where the same were not available. The Commission also urged State Governments to utilize enhanced fiscal space available through tax devolution (32% to 42%) for this purpose.
785 Family Courts are functional across the country (July 2023).