Under the terms of the agreement, Heche will pay Laffoon a lump sum of $515,000 (£372,000), in addition to giving him half of their community property and over $700,000 in stocks and other assets.
The couple will share physical and legal custody of their son Homer, while Heche will pay $3,700 a month in child support, People reports.
Laffoon has waived his right to any spousal support and Heche will keep her home in Vancouver.
Heche's attorney Daniel Jaffe said: "Anne is relieved this case is over, and is looking forward to getting on with her life and career."
Earlier this year, it emerged that Heche was eager for her current boyfriend James Tupper to complete his divorce from Katherine Mayfield.