Paul McCartney to sign a divorce settlement worth $110m

Sir Paul McCartney is set to sign a record divorce settlement that'll see his estranged wife Heather Mills walk away with $110million.

Mills, dubbed Mucca by British tabloids due to her porn past, is to take a lump sum of $40million and a further $5million a year for the next 14 years - every year until their daughter Beatrice turns 18.

As part of the arrangement, Heather, 40, will be barred from publicly discussing, in detail, the the reasons behind the breakdown of the six-year marriage.

According to reports, the record annual payout includes a large share put aside solely to cover the cost of 24hour security for Mills - whether Beatrice is with her or not after recently claiming she had been the target of "death threats".

Heather will be Beatrice's main carer but Paul, 65, will have equal visiting rights. There will be hand-overs every week and each parent will spend alternate weekends with Beatrice.

Heather - who was previously represented by Mishcon de Reya, but the law firm severed ties last year, claiming she owed them millions in unpaid legal bills, has also agreed not to seek to live abroad for at least the next five years, which would scupper any immediate plans of a full-time career as a media personality in America.

As part of the arrangement, the former Beatle had not wanted Beatrice to go to private school - but Heather appears to have got her way and Beatrice is expected to begin her first term in paid-for education in Britain this autumn.

Sir Paul's property portfolio - including the former marital home in North London and homes in Sussex, Scotland, New York and Los Angeles - remains his under the deal, according to Britain's Daily Mail newspaper.

The whopping sum also reflects Heather's success in arguing that Sir Paul should clear an outstanding legal bill with Mishcon de Reya.

Despite being equivalent to only 7 per cent of Sir Paul's estimated $1.6billion fortune, the sum will be the highest settlement given to a wife in Britain.

The $110million exceeds the $96million businessman John Charman was ordered to pay his former wife last year.

One High Court judge who has presided over numerous divorce cases said yesterday that the deal in fact "favors McCartney", since he will be paying out only $40million immediately, then be earning interest on the rest until the annual payments go out to Heather.

The judge said: "Had Heather got the whole lot now, the interest alone would have ensured that over the years she would have been a lot better off. And it is a very small share of McCartney's fortune.

"That said it is the kind of settlement one would expect would be awarded by a judge, when all the variables are taken into account.

"It's sensible and both parties will come away feeling they have a good deal which is, essentially, what counts."

The settlement amount closely reflects discussions Heather and Paul had at a Financial Dispute Resolution in October of last year.

Sources on both sides said the pair have now agreed all the details of the settlement "in principle".

Since Miss Mills currently has no legal representation, the pair are expected to spend much of next week having all aspects of the complex deal examined and approved in a closed hearing before High Court judge Mr Justice Bennett.

A legal source said: "It should take a couple of days. Unless new variables emerge, it should be quite straightforward."

Mills and McCartney still have another 13 weeks under the two-year separation period required for a no-fault divorce before it becomes final, but it is understood that both parties are pushing for it to be finalised next week.

The details of the settlement may never officially become public. A source close to the former couple said: "Paul has always argued that for Bea's sake as much as anything, her parents should not be seen to be trawling over the break-up publicly for years to come."

Reps for Sir Paul and Miss Mills would not comment yesterday.