Two years after the pair separated, and after almost a year-long pending divorce, the pair became single on Tuesday in Los Angeles Superior Court, with both actors agreeing not to pay spousal support.
Demi, 51, and 35-year-old Ashton wed in September 2005 in Los Angeles and the handsome Two and a Half Men star filed for divorce in December 2012, citing irreconcilable differences with the Ghost actress.
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It is thought that the divorce was delayed by disagreements about finances.
According to reports, Demi – estimated to be worth more than £100million – was asking for spousal support from her ex, who is 16 years her junior. Ashton became the highest-paid actor on TV when he replaced Charlie Sheen as the leading role in Two And A Half Men in May 2011 .
"There had been lengthy negotiations between lawyers for both sides about the financial settlement – in particular how much he owed her from their marriage," an insider added. "They have finally come to an agreement that was acceptable to all sides."
Since splitting from Demi, Ashton has moved on with Black Swan beauty Mila Kunis, while Demi was most recently linked to 30-year-old Australian pearl diver Will Hanigan.
The Hollywood actors divorced just in time for Thanksgiving, which Ashton will be spending with his girlfriend and former co-star on That '70s Show.
The beautiful brunette was photographed on Tuesday shopping in preparation for the American holiday – with none other than Ashton’s mum, Diane Kutcher.