How do you handle rift between your spouse and another family member?

I experienced this recently. My wife unintentionally offended my sister during our family reunion. No bias or any favoritism, I equally divided my time and talked to them personally. I listened to the explanations of both parties and ended up leaving them two alone and together. Thankfully, they were both open minded and matured enough to understand each other. Lesson learned for me: No need to bank on the personal relationships, if it can be solved by communicating with each other, make them do so. If you think such arrangement is impossible, weigh who's on the right side and advise the other about your decision.

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I still try to be objective and respectful as much as possible. I try to understand both sides as I don't want to tolerate any untowardly behaviour, even if it's from my partner. However, if that specific relative really crossed the line, then it's a you-and-me-against-the world thing for me and my partner LOL.

I talk to both parties and listen to their sentiments. From there, I come up with a resolution that would benefit both sides, with no bias. I try to be as rational as possible since both of them are my families.