Does manually arresting criminals cause a drop in respect of their family?
Solution 1:
Having finally found a married criminal to test this on, I can confirm that even though they are actually evil criminal masterminds having them manually arrested does give the thought "A member of my family was arrested" and a corresponding roughly 25% respect drop.
I would see if this happened when the police arrest crims off their own back, however they seem too incompetent to sort this out themselves. I'll keep an eye out.