Britney Spears and Kevin Federline Settle Custody Battle

Britney Spears and ex-husband Kevin Federline have finally settled their ongoing custody battle.

Federline's child support payments will go from $15,000 to $20,000, and Spears will also pay his $250,000 legal bill, according to court documents filed Friday.

Spears currently has monitored, twice-a-week visitation and one overnight visitation per week with her's and Kevin's sons, Sean Preston, 2 1/2, and Jayden, 1 1/2. Under the settlement, Spears will get more time with her kids, her attorney, Laura Wasser said last week.

"It was a victory for the whole family that they don't have to go to a trial," she said. "I think they figured out a way to work together, to co-parent and make sure their kids will benefit from the result of that."

Attorneys for both Spears and Federline had been due in court this afternoon for a second straight day of discussions in the custody battle over Sean and Jayden.

But at the last minute the hearing was scrapped and the respective lawyers were dispatched to the courthouse to file the settlement documents.

"The hearing has been called off," a spokesman for Los Angeles Superior Court said. "A settlement has been reached."

The only thing requested in the settlement by Federline, 30, was "more money for him and his attorney," an insider says.

The deal means the ex-spouses won't be headed to a court showdown. A trial in the nearly two-year case had been scheduled for next month.

Spears is now said to be well on her way to regaining joint custody of her two sons, which she lost following her January meltdown.

"By the end December she will effectively be getting 50-50 time with her boys based on her improvement," a Spears source says.