The two sides emerged from more than 10 hours of talks late on Monday to announce a settlement.
The deal marked a partial victory for the Earl, the brother of the late Diana, Princess of Wales, who wanted the divorce to take place in South Africa.
The Earl's lawyers said the deal was agreed to prevent further pain to Countess Spencer under cross-examination in the witness box.
Lady Spencer had demanded a £3.75 million clean break settlement but, under the terms of the divorce settlement, financial details were not divulged.
In a statement issued by the Earl and Countess Spencer, both parties said they had contributed to the breakdown of their five-year marriage.
Both withdrew their allegations against each other and said that their primary concern was the welfare of their four children.
They appealed for privacy.
![[ image: width=154]](/olmedia/images/_36237_countess.jpg)
'We are glad to be able to say that we have reached a financial settlement in the High Court in Cape Town," the statement read. "This will involve us being divorced in South Africa shortly."
Earl Spencer, 33, and the countess, 32, live in separate homes in Constantia, one of Cape Town's most affluent suburbs.
They moved to South Africa in 1995, ostensibly to escape press harassment.
In the divorce row, the Earl was accused by his wife's lawyers of "serial adultery" during their marriage. The accusations were published in British tabloid newspapers, much to the anger of the Earl.
Earl Spencer drops efforts to gag newspapers
(27 Nov 97 | Africa)
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