Rob Rich/Everett Collection
August 17, 2007 12:00 PM

As expected, Michael and Dina Lohan reached a settlement in their contentious divorce on Friday, avoiding a public trial.

“Mr. and Mrs. Lohan, you have both demonstrated to me extraordinarily good judgment in resolving the matter as you did,” Judge Robert Ross told Lindsay’s parents.

John DiMascio, Jr., Michael’s attorney, says he expects the divorce to be final in about 90 days, depending upon how quickly the divorce documents are filed and then processed by the court.

“Now the healing process can begin for my children and myself,” Dina said as she left the Mineola, N.Y., court. When asked how Lindsay is doing, she said, “fantastic.”

All of the couple’s differences, however, are not completely settled. Dina and Michael will meet again in family court on Sept. 6 to work on “pending issues, custody and parental access to the children,” DiMascio told PEOPLE.

A psychologist who already has met with Michael, Dina and their two younger offspring, Ali and Cody, will also then make his recommendations concerning the children. “Hopefully, we’ll be able to resolve that one with the same efficacy as this one,” said DiMascio of Friday’s agreement, terms of which remain confidential.

The couple’s older children, Lindsay Lohan, 21, and her brother Michael, 19, are no longer minors and, therefore, not under the purview of family court.

Michael and Dina, who had married in 1985, agreed to a separation in 2005. About two months ago, ago, Dina requested that the separation be finalized with divorce, which Michael had not granted until Friday.

In terms of visitation rights, Michael has not seen Cody and Ali in more than three years. “But [by Sept. 6] I should have met with them,” he told PEOPLE. Michael added that he is moving legally to keep Dina’s boyfriend, Jim McMillan, from his children. “That,” he said, “will be part of the agreement.

On Aug. 3, Michael’s attorney sent Dina and her legal team a letter that claimed Dina’s “inebriated” boyfriend was living with her and the children at the Lohans’ home in Merrick, N.Y.

The letter further demanded that the co-habitation cease.

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