Britney pays Kevin just $1m for divorce

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The couple came to an agreement after a five-hour meeting in LA with their lawyers.

Federline will walk away with much less money than expected because of the airtight pre-nup Spears's lawyer devised. The final deal also means Spears, 25, and Federline, 28, will have joint custody of their sons - Sean Preston, 18 months, and six-month-old Jayden James.

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Over the moon: Britney hits the town hours after it was announced that she had a agreed a settlement in her divorce from Kevin Federline

A spokesman for Federline's lawyer said the pair have signed "a global settlement on all issues of their marriage".

Spears has amassed a $50 million fortune during her career after her debut single Hit Me Baby One More Time in 1998 and it was reported that Federline was set to pocket up to $20 million from the divorce. He also initially wanted sole custody of the children.

Cash or credit: Kevin Federline is said to be in the money with a rumoured financial settlement of millions following his divorce from Britney

Spears cited irreconcilable differences as the reason for ending her two-year marriage to Federline. He was seen leaving a Los Angeles court looking relaxed carrying documents after negotiations with his ex-wife.

It was reported that according to her prenup, Spears's personal fortune would remain intact and that their manision in Malibu would be split 50-50.