McCartney, 65, will pay Mills $40 million up front and a $5 million annually as child support for their daughter Beatrice till she reaches the age of 18.
Mills appeared ecstatic over the settlement as she left the courtroom Friday.
Under the settlement Mills, 40, has accepted a gag order that forbids her from revealing any details about their four year old marriage.
Mills, who will get physical custody of Beatrice, will bring her up in Britain and Eastern Europe where she plans to buy property to get away from the British press.
McCartney's total assets are estimated at $1.65 billion.
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