Sands declined to elaborate on terms of the settlement, saying only that it covers child custody and financial matters.
Spears' attorney, Laura Wasser, declined to comment.
"It's still too early to know the exact details as far as who got what and how the two plan to share custody of their kids," said "E! Entertainment" anchor and Early Show special correspondent Giuliana DePandi Friday, "but I do have an inside source telling me the early reports that Kevin received a mere $1 million of Britney's fortune and that they reached a 50/50 (custody) split with the kids are not accurate. There is no truth to those details.
"What I have learned, however, is that, unlike their turbulent relationship, yesterday (Thursday), the two were very amicable. At one point, they even left the meeting together to take a cigarette break outside the building. They had a nice 15-minute chitchat and returned upstairs to get back to work.
"So, even though at times they've acted pretty immature in their breakup this past year, yesterday, they were acting like respectable and responsible adults."
The settlement came more than a week after Spears checked out of a luxurious rehab center. During her nearly one-month stay at Promises Malibu Alcohol and Drug Rehab Treatment Facility, Spears and Federline were under a temporary agreement that gave them joint custody of their two young sons.
Federline counter-filed court papers the following day seeking sole custody of their boys — 6-month-old Jayden James and 18-month-old Sean Preston — and for spousal support.