The songstress filed paperwork on Tuesday stating that she and estranged husband Russell Brand have agreed on all financial issues.
The judgement was then signed by her, Russell and Superior Court Judge Marc Marmaro - less than six weeks after Russell filed for divorce.
Katy signed the divorce settlement with a smiley face next to her signature, court records obtained by Radar Online show.
The official document states that: 'The parties have entered into a comprehensive written settlement of all issues, including, without limitation, with respect to the property to be confirmed or assigned to each party."
The divorce won't be finalized until June because of the required six month waiting period as dictated by California Law.
Russell announced he and Katy were splitting up at the end of last year. According to TMZ, the pair didn't sign a pre nuptial agreement and as a result, Russell is entitled to approximately $20 million of Katy's fortune.
However, sources claimed yesterday that the British comedian won't exercise his community property rights and take 50 per cent of Katy's earnings.
Meanwhile, it has been reported that Katy is to join the X Factor judging panel after Simon Cowell axed Nicole Scherzinger and Paula Abdul.
Katy impressed as a guest judge on the UK version of the talent show two years ago.
"I worked with Katy once. I think she would be fun because she is hard - in a good way - and she''s feisty,' Simon told Terri Seymour on Extra TV.
Despite rumors that Simon wanted Beyoncé Knowles and Mariah Carey, the mogul revealed it wouldn't be feasible for either to appear.
'I don''t think Mariah would make that commitment. She''s just had kids,' he told Terri Seymour on Extra.
He also slammed reports he offered Beyonce $100million to appear on the show.