When should family draw the line?

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Growing up we where taught to stick by your family no matter what. But dont you think their should be a line drawn when it comes to that?! If you know that family member is lieing and hurting other people mentally and emotionally, dont you think you should help them in a positive way instead of feeding into the negativity of that person? If you know they are stealing from others and from you, shouldnt you put a stop to it or just leave them be. So they can keep doing it to other people. When you see your own parents at eachothers throats and see what one has done to the other. Are you suppose to just sit back and watch one of them try and destory the other person mentally and emotionally, so they can look like the victim. But you know load and clear and have seen clearly they are far from being any victim!