Mel Gibson Settles Money, Custody Issues with Ex-Girlfriend

08/31/2011 at 01:30 PM EDT

Mel Gibson, Oksana Grigorieva Settle
Oksana Grigorieva and Mel Gibson
Michael Kovac/FilmMagic
To end the acrimonious dispute that practically dates back to the October 2009 birth of their daughter, Lucia, Mel Gibson agreed on Wednesday to pay $750,000 over the next five years to ex-girlfriend Oksana Grigorieva.

The actor-filmmaker will also allow her to continue to live in a house he owns in Los Angeles.

"Thanks, your honor, for bringing this case to a reasonable conclusion," Gibson, 55, told Los Angeles Superior Court Judge Peter D. Lichtman, who articulated in a hearing the terms agreed upon by the parties over four days of negotiation last week.

Under the deal, Gibson will sell the house when Lucia turns 18 and puts the proceeds in a trust for her.





Also under the deal, the parties are not allowed to publicly discuss each other or their relationship. Lichtman specifically said they also cannot write books about each other.

Grigorieva's attorney told reporters that his client was in a loving, three-year relationship with Gibson before things went bad, and that she is pleased with the agreement and looking forward to focusing on her daughter and her music career.

"Oksana settled this case today because it's in the best interests of Lucia," said attorney Daniel Horowitz.

Under the agreement, custody of Lucia will be shared 50-50. Issues pertaining to child support were presumably discussed behind closed doors and not publicly disclosed.

The agreement settles a civil lawsuit that Horowitz threatened to file on behalf of Grigorieva, 41, and her teenage son, Alexander, whose father is Timothy Dalton. Alexander witnessed an incident last year in which Gibson allegedly assaulted Grigorieva as she was holding Lucia.

To settle the matter in criminal court, Gibson pleaded no contest in March to misdemeanor battery.

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