It looks like the nasty divorce settlement proceedings between Sir Paul McCartney and his ex-wife Heather Mills are finally over. After almost two years of squabbling, the two have finally reached an agreement.

The 38-year-old former model will receive a total of $40 million at once, and an additional $5 million a year until the couple’s 4-year-old daughter Beatrice turns 18, Britain’s Daily Mail newspaper has revealed.

Sporting a black-velvet three-piece pantsuit with a crimson blouse, a visibly excited Mills walked from the High Court in London smiling broadly yesterday. Also part of the deal, Mills agreed to never speak publicly or write in detail the collapse of their six-year marriage.

Mills is set to hold main custody of Beatrice, with McCartney, whose fortune is estimated at $1.2 billion, having equal visitation rights. Beatrice’s 65-year-old dad also agreed to set up a $2 million trust fund that she can access when she turns 18. Mills plans to live with Beatrice in Britain and either Poland or the Czech Republic, where she hopes to buy a home.

“They have a settlement,” a source said. “They have agreed on all points. Nothing much has changed this week. There was a deal at the beginning, but it was a complex one. There have been a few tweaks to the agreements, but those have been mostly changes Heather wanted made.” A hearing, perhaps the final one, is scheduled for Monday.

“Heather has had no legal representation throughout recent weeks. If a deal has been reached, Mr Justice Bennett has to be sure of a few things to bind Miss Mills to the settlement. He needs to be sure she knows of and understands all the details of the agreement,” a source said, adding that “He also must be sure that she not feel under duress to sign it.