Britney Spears and Kevin Federline reached a divorce settlement Thursday, PEOPLE has learned.
After a five-hour session with Federline and his attorney Mark Vincent Kaplan and Spears and her representatives, "the parties signed a global settlement on all issues of their marriage and the custody of the children," Kaplan's spokesman Michael Sands tells PEOPLE.
The deal, worked out in the Los Angeles offices of Spears's attorney Laura Wasser, comes just days after Spears left rehab on March 20. The terms were not revealed.
Spears and Federline wed in September 2004 in a suprise cermony and soon settled into a Malibu mansion.
The couple had two sons, Sean Preston in September 2005 and Jayden James almost a exactly a year later.
Not long after their second son was born, trouble signs appeared in their marriage, with Spears missing many of Federline's promotional appearances for his poorly received hip-hop album Playing With Fire.
Spears filed for divorce on Nov. 7, 2006, citing irreconcilable differences. In a temporary agreement, Spears had custody of the boys with three days of visitation for Federline.
Britney began months of hard-partying in New York, Miami, Las Vegas and Los Angeles, hooking up for a time with Paris Hilton. Spears initially defending her partying as long-overdue fun , but by January, her manager acknowledged she was having a rocky moment.
After a wild weekend in which she shaved her head, Spears entered rehab at Promises in Malibu, where she stayed for about four weeks. Federline, who watched the boys during her treatment, declined to return custody to Spears until he was satisfied with her follow-through to rehab, a source says.
After a five-hour meeting on Thursday afternoon with their lawyers, Britney Spears and Kevin Federline finally reached a divorce agreement, Usmagazine.com has learned.
"All parties signed a global settlement agreement on all issues concerning their marriage and custody of their two children [Sean Preston, 18 months, and Jayden James, 6 months]," said Michael Sands, spokesperson for Federline's lawyer, Mark Vincent Kaplan.
Details of the agreement haven't been released, but a source close to the negotiations tells Usmagazine.com that reports of a $1 million settlement and a "50/50" custody agreement are "inaccurate."
On the afternoon of March 29, Britney, 25, left her Beverly Hills home in a black Escalade with her bodyguard and arrived at her attorney Laura Wasser's Century City office building.
Federline, along with the couple's two children, arrived in a white Yukon 20 minutes later with two bodyguards and parked in in the underground garage in the same building.
At one point during the meeting, Kevin went outside to smoke a cigarette and was joined by Britney. "They had a 15-minute conversation," Sands said.
The pair split in November after a two-year marriage. Federline, 29, now lives in a Tarzana home, where the couple's children have been staying with their father ever since Spears entered rehab in February. The singer completed her program at the Promises treatment center in Malibu on March 20.
Source: Us Weekly
Britney Spears and Kevin Federline reached a settlement in their divorce Thursday, a spokesman for Federline's attorney said. After a five-hour meeting with their attorneys present, Spears and Federline signed "a global settlement on all issues of their marriage," said Michael Sands, a spokesman for Federline's attorney Mark Vincent Kaplan
Sands declined to elaborate on terms of the settlement, saying only that it covers child custody and financial matters.
Spears' attorney, Laura Wasser, declined to comment.
The settlement came more than a week after Spears checked out of a luxurious rehab center. During her nearly one-month stay at Promises Malibu Alcohol and Drug Rehab Treatment Facility, Spears and Federline were under a temporary agreement that gave them joint custody of their two young sons.
When Spears filed for divorce on Nov. 7, the pop star cited irreconcilable differences as the reason for ending her two-year marriage to Federline. She sought custody of the children, with visitation rights for Federline.
Federline counter-filed court papers the following day seeking sole custody of their boys - 6-month-old Jayden James and 18-month-old Sean Preston - and for spousal support.
TMZ has confirmed that Britney Spears and Kevin Federline are with their lawyers right now and they could be inking a settlement to their divorce before leaving.
It is NOT TRUE that Spears was at the hospital.
If the settlement develops the way we're told, K-Fed will walk away with about $1 million and Britney will win primary physical custody of their two children.
Although TMZ is reporting this story, E! has a different side of the story: "The terms of the settlement remain under wraps, but sources close to the situation told E! that a TMZ.com report stating Federline walked away with $1 million and joint physical custody of the kids is not accurate."