Creating family is a way of grouping people in an event. Each family can have one head and one or more members. Any share between a member and other people in the event are payable via the head.
Members and head in the same family do not owe each other. Of course a member or a head can still pay for something but nobody will owe a member. Everyone owes the head for a member.
Each share can be transferred to a member but it goes true the head.
Families are kept per event so a family in Camp event has nothing to do with a family in the Picnic event.
Once a family added, the Family tab shows all heads and the members names. You can swipe delete each member and if all members are deleted, the family will be removed from the event. People remains in the event all transferred shares resume their original state.