Britney, K-Fed Make Peace, Settle Custody Spat (E! Online)

Los Angeles (E! Online) - Britney Spears is getting more time with her kids. Kevin Federline is getting more money.

Thats the takeaway from the settlement agreement reached between the former fun couple, E! News has learned.

According to the paperwork filed Friday in Los Angeles Superior Court, Spears monthly child support payments to K-Fed have been bumped from $15,000 to $20,000, retroactive to July 15, and Federline attorney Mark Vincent Kaplan will get a check for $250,000. (View the court docs.)

Attorneys for the ex-Chaotic tandem had been due in court this afternoon for a second straight day of discussions in the custody battle over sons Sean Preston, 2, and Jayden James, 1.

But at the last minute the hearing was scrapped and the respective lawyers were dispatched to the courthouse to file the settlement documents.

The hearing has been called off, a spokesman for Los Angeles Superior Court tells E! News. A settlement has been reached.

According to a source close to Spears and familiar with the deal, the 26-year-old singer will also be getting increased time with her boys.

The only thing requested in the settlement by Federline, 30, was more money for him and his attorney, the insider says.

The deal means the ex-spouses wont be headed to a court showdown. A trial in the tug-of-war case had been scheduled for next month.

Spears is well on her way to regaining joint custody of Sean Preston and Jayden James, which she lost following her January meltdown.

By the end December she will effectively be getting 50-50 time with her boys based on her improvement, the Spears source says.

(Originally published July 25, 2008 at 3:05 p.m. PT.)