"You have both demonstrated to me extraordinarily good judgment in resolving this matter as you did," state Supreme Court Justice Robert A. Ross told Michael and Dina Lohan.
Terms of the divorce agreement, which will become official within 60 days, weren't disclosed. Dina Lohan has custody of the couple's two minor children, Aliana, 13, and Dakota, 10.
Neither Lindsay, 21, nor her brother Michael, 19, were involved in the divorce proceedings since they are no longer minors.
Dina Lohan said, "Now the healing process can begin for my children and myself."
She said Lindsay, who was arrested last month in Santa Monica, Calif., on suspicion of driving under the influence and cocaine possession, is doing "fantastic."
The "Mean Girls" star faces an Aug. 24 court date in connection with that arrest.
The Lohans were close to an agreement on a divorce settlement in 2005, but that deal collapsed while Michael was serving a prison term for drunken driving, brawling and other charges.
He was released in March and entered a Christian-based drug and rehabilitation center in West Babylon. He has repeatedly said Lindsay needs the same kind of treatment.