Spears' lawyer Laura Wasser told reporters that the divorce had been finalised.
"The divorce is final. [Britney] is okay with the arrangement. She would like to be with the kids more. She said that. [She] thinks [Federline] would like that too," Usmagazine quoted her, as saying.
And, while Commissioner Scott M. Gordon also granted Spears' request to seal the child custody agreement "for the interest in the safety of the children," sources close to Federline reveal that he may be seeking full custody. At the moment the couple share custody.
Gordon granted the request temporarily so they can have a full hearing on the matter on Aug. 14.
"(Federline's) attorney Mark Vincent Kaplan...has been watching and monitoring Britney's behavior very closely," says the source.
"There is a clause in the divorce so either parent can seek full custody and it is very possible that you will see Kaplan seeking full custody for Kevin as early as this week...Kevin is extremely concerned with Britney's erratic behavior and he needs to make sure his kids are protected. Britney has not met the benchmarks for sobriety that [were] outlined in the agreement," the insider added.
Spears filed for divorce on November 7, 2006, after just two years of marriage citing "irreconcilable differences". At the time, she asked for both legal and physical custody of sons Sean Preston and Jayden James, with Federline getting reasonable visitation rights.
However, things got complicated for Spears due to a very public breakdown that resulted in her mom and Federline threatening to take away the kids if she didn't get help. She then completed a month-long programme at the Promises rehab centre in Malibu in February.
In March, the estranged couple came to an out-of-court settlement which gave them joint custody of their kids. An iron-clad prenup reportedly made the financial aspects of the split simple.
Spears' marriage to Federline was her second walk down the aisle, she had previously married long-time friend Jason Alexander. That marriage lasted for a mere 55 hours.