The "Men in Trees" actress reached a settlement with Laffoon Friday that will conclude their contentious divorce fight with the lump sum payment and monthly child support payments of $3,700, People magazine reported.
The 38-year-old actress also agreed to pay most private school fees for her son Homer and half of the boy's "agreed-upon extracurricular activities," Los Angeles Superior Court records show.
Heche had previously opposed monthly $15,000 payments she had been ordered to temporarily pay, alleging she was out of work and unable to afford it.
E! Online said the actress even filed a declaration alleging she was $364,000 in debt and unable to make the payments to Laffoon, who filed for divorce in February 2007.
The Web site said both sides in the divorce case have alleged the other parent is unfit to raise their 6-year-old son, who has been splitting time between his parents during the last years.
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