A Superior Court judge on Thursday said the actor and actress will have alternating weeks with their daughters Taylor, 16, and Hayley, 12. They also will alternate custody annually for holidays such as Christmas and the children's birthdays.
"My wife and I have been able to reach an agreement that we feel is in the best interest of our children, which affords them the opportunity to spend significant time with each of us," Hasselhoff said in a statement read Friday by his publicist, Judy Katz.
"It was in the best interests of the children and that's why they did it -- (to) put it behind them and move on," said Gary Mitchell, the attorney who represented Bach.
Earlier Hasselhoff, 53, and Bach, 42, had been splitting custody of the girls.
Hasselhoff filed for divorce Jan. 12, citing irreconcilable differences after 16 years of marriage. Bach filed her own divorce papers a day later, also citing irreconcilable differences.
Judge Mark A. Juhas indicated he would rule later on their requests to dissolve the marriage.
In March, the court issued a temporary restraining order requiring Hasselhoff to stay away from Bach except for "peaceful contacts" involving child visitations. The order remained in effect Friday.
In her request for the order, Bach claimed instances of domestic violence in December and February. In one incident, police officers were summoned but didn't give Bach an emergency protective order, according to court documents.
Hasselhoff's attorney said at the time that he denied the abuse allegations.
Hasselhoff played lifeguard Mitch Buchannon on "Baywatch" from 1989 to 2000. He also starred in the 1980s TV series "Knight Rider."
Bach appeared in the soap opera "The Young and the Restless" and in numerous episodes of "Baywatch" and "Knight Rider."