"They are divorced," Spears' attorney, Laura Wasser, said after a Superior Court hearing. "Everything is finalized."
Court Commissioner Scott Gordon signed orders for dissolution of marriage, an alimony agreement and child custody.
The alimony agreement will not be made public unless there is an enforcement issue, Wasser said.
"Most of that tracks the prenup," the attorney said, without elaborating.
According to TMZ.com, Federline is getting $15,000 a month in child support, with custody split 50/50. He is also getting $20,000 a month in spousal support, based on the prenup, but it appears that will end in November.
The child custody order was tentatively sealed, pending an Aug. 14 hearing.
"The best interests of the children could be harmed" if the arrangement were not sealed, Gordon said.
According to a declaration filed by Wasser on Monday and obtained by TMZ.com, Spears is afraid that "criminals ... might target the minor children for financial gain."
Wasser wrote that the child custody portion of the divorce details the specific timeshare schedule and transportation matters. She fears that if the document were to become public, the media would have "a greater ability to ascertain the physical whereabouts of the minor children."
Wasser wrote: "Such information greatly increases the chances that the actions of the media could threaten the safety of the minor children by, for example, causing a traffic accident or by exposing the minor children to criminals who might target the minor children for financial gain."
Spears married Federline in October 2004, eight months after her first marriage to childhood friend Jason Alexander was annulled. She cited irreconcilable differences when she filed for divorce from Federline on Nov. 7, 2006.
Wasser said that Spears was "OK" with the terms of the settlement but that "she would like to be with her kids more."
Since February, Spears, 25, and Federline, 29, have shared joint custody of their two sons, 22-month-old Sean Preston and 10-month-old Jayden James.
The Associated Press contributed to this report.