TMZ has confirmed that Britney Spears and Kevin Federline are with their lawyers right now and they could be inking a settlement to their divorce before leaving.

It is NOT TRUE that Spears was at the hospital.

If the settlement develops the way we’re told, K-Fed will walk away with about $1 million and Britney will win primary physical custody of their two children.

Source: TMZ

This is live… they’re at the lawyers’ offices at this moment, so we’ll keep you updated if there are any developments.