Yes it is before ground, but you have to remember that this switch functions only to connect terminal A with terminal B when the temp is above 90C (I call this “working” and “on” later). One terminal is always connected to ground (I’m at work without my manual, so let’s just call that one “B”) so when the switch is connecting those points, that other side “A” is now also ground. I am talking about this particular switch, obviously, but many of the switches in our cars operated this same way where they are actually connecting the circuit to ground, not to power. For stuff like seatbelt switches and shit like that, it is a much safer way to switch things.
Here is another way to think about it. That circuit with the switch (essentially) is composed of the battery, the coil in the relay which works to activate the fan, and the switch itself (we are ignoring the wires right now). When the switch is off and you are measuring it with a meter, there is no path to ground except through your Volt meter (connected to the wire going into terminal “A” with the red lead on the meter and to any ground on the car with the black lead). The Volt meter has a very high (theoretically infinite, actually in the Mega Ohm range) resistance whereas by comparison the coil in the relay has a very low resistance, so almost all of the voltage drop happens across your meter (so it would show very close to battery voltage when the switch is off).
Pretend the ammeter in the pic below is the coil in the relay and the resistor in the picture is the switch.
When the switch is open, you have to imagine that resistor isn’t there at all. Also, that coil in the relay has a small resistance in relation to the volt meter. Imagine the coil has less and less resistance. Eventually you are left with just a straight wire there and you are left measuring the battery.
But if that switch is working, it is closed, so it is like the resistor in the picture is a solid wire and by virtue of that both probes of your multimeter are connected to ground. Now, we tend to think of those grounds as being in physically different places and sometimes that makes picturing the circuit difficult; one is a black wire coming out of the terminal of the switch and the other one (black lead from meter) is probably connected to the engine or a bracket or something but ultimately both of those grounds (as well as all the others in the car) make it back to the negative terminal of your battery. When diagnosing issues, all those paths back become very important, but when you are trying to visualize the circuit, you have to picture them all as a single point for it to make sense.
Does that help you get it at all? It was a very long winded response and I’m not sure if it was clear what I am trying to say. I made it more basic than I think you needed welfare, but I thought it might help someone else to get a handle on how to visualize this stuff.
One last thing to add, when I say ground on something like this, I do mean the Helm’s definition which is usually under 1V. That switch won’t be perfect and so will have a little resistance and so it won’t have an absolutely perfect path to ground.