According to the agreement, which still needs to be signed off on by the court, Federline retains sole custody of the couple’s two sons, Preston, 2 1/2, and Jayden, 1 1/2. Spears – who’s currently allowed two visits and one overnight per week – will keep her visitation rights.
“The case has been settled,” Federline’s attorney, Mark Vincent Kaplan tells PEOPLE. “This is the end of a two-year journey.”
Both parties are due in court Friday.
The legal saga, which began with shared 50-50 custody in July 2007, culminated in the most dramatic of public downfalls: Spears – the pop powerhouse worth an estimated $100 million – was twice forcibly hospitalized early this year for mental health issues. (Her father Jamie stepped in to take legal control of her affairs.)
However, a judge can always modify custody settlements – and a source close to Spears tells PEOPLE the singer will likely get increased visitation as time goes on.
“Until the kids turn 18, we can expect in years to come that Britney and Kevin will be back in court,” says L.A. family lawyer Lynn Soodik, who is not involved with the case. “Britney will have a better chance of winning more custody once she regains her health. This is just the end of Round One.”
E! was first to report the couple’s settlement.