"Familiarity breeds contempt" is a famous proverb. It means that a person has good respect for his neighbour in the beginning which gradually decreases with familiarity. So, this proverb says that keeping a distant relationship with someone can build a good relationship.
For example if a person lives far away from his friend, then he has a good respect for his friend and he receives the same. This can continue for a long time. But, if they both live in the same place, then their talks with each other increases day by day and finally leads to quarelling and thus their friendship is broken atlast. Thus, it is recomended to maintain a decent (distant) relationship with any one to have a better result.
Familiar: If you say someone is familiar to you, then you meet the person often or many times.
Contempt: If you have a contempt for something or someone, you think that it is not important or you have no respect for him.
1. Frisk did not like his uncle who now lives nearer to Frisk's house. This reminds one that familiarity breeds contempt.
2. I don't like the way in which he behaves to me. This reminds me that familiarity breeds contempt.