The deal was agreed in Manhattan on Wednesday, with Lauren said to have won half of her $4million pre-nuptial agreement.
They have also come to an agreement to share joint custody of their seven-year-old son.
Both parties were said to be in New York for the settlement, although they were not together to sign the deal.
Lauren's lawyers, Robert Cohen and Bernard Clair, said, "The matter has been resolved and the parties have moved on."
The couple wanted to reach a settle as quickly as possible, for the sake of their son.
Andrew told TMZ, "As I've said all along, my priority was resolving this quickly for the sake of our son.
"Lauren and I both love him very much and I’m looking forward to starting a new chapter in our lives."
According to TMZ, Lauren will live in New York so that she can be close to her son. The 36-year-old US socialite is believed to be 10 weeks pregnant with Simon's baby.
Her property mogul husband filed for divorce last month, shortly after the news broke of his wife's infidelity with his close friend.
Simon - whose fortune is estimated at $368million - was cited as a "co-respondent" in the court papers for adultery.
He is currently keeping a low-key profile as he unwinds with his former flame Sinitta, close friend Kelly Bergantz and her sister Jamie, in the French Riviera.