The 33-year-old former 'Dawson's Creek' star signed a prenuptial agreement when she married Cruise in 2006 which excluded her from his USD 250 million fortune.
With no spousal support from the 'Top Gun' star, Holmes will only receive USD 33,000 a month in child support for their six-year-old daughter Suri until she turns 18.
Cruise, 50, will also pay for Suri's medical and dental expenses as well as her insurance, education costs and college tuition. The money will reportedly be paid by electronic transfer, reported TMZ.
The couple also agreed that their daughter will not attend boarding school, shooting down reports that Suri would be sent to a school which focused on Cruise's religion, Scientology.
Holmes will have sole custody of Suri, however Cruise was granted 'meaningful' visitation rights.
If their marriage had lasted more than 11 years, Holmes, who earns a considerable amount less than her former husband, would have received half of Cruise's USD 250 million fortune.
The settlement came just two months after Holmes sensationally lodged the legal papers to end their five-year marriage citing 'irreconcilable differences'.