Mel Gibson will pay $750,000 to his ex-girlfriend Oksana Grigorieva and continue to provide housing for their daughter to resolve their bitter legal fight.
The settlement is intended to end the bickering and accusations that have permeated the case handled in mostly secret proceedings for more than a year, the judge said.
Sitting a few feet away from each other as he spoke, the former lovers tried hard not catch each other's eyes.
The payments to Oksana, a Russian musician, are dependent on a lasting truce.
Custody of Lucia, who turns two in October, will be shared between Mel and Oksana.
Under the agreement, the little girl, will receive support equal to what the actor-director provides for his other seven children with his ex-wife Robyn.
In addition, 55-year-old Mel will keep paying for a multi-million dollar house he purchased for his former girlfriend and their child.
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