According to the AP, both sides agreed that making slanderous comments in the media would eventually have an adverse reaction on their daughter.
Kim appeared on ABC's 20/20 television show in Feb. and accused Eminem of still being addicted to drugs and neglecting his child.
Mathers also gave another explosive interview to 95.5's Mojo in the Morning show two weeks after the 20/20 segment and claimed that Eminem was incapable of loving women, abusive and still addicted to drugs.
Eminem, who was not present in court today, phoned in to the hearing.
"We're happy the court was able to bring this matter to a just and equitable resolution," Eminem's lawyer, Harvey Hauer said.
Eminem and Kim Mathers married in 1999. They divorced in 2001.
After several years of separation and several high profile encounters with the law, the couple decided to remarry in Jan. 2006, but divorced for a second time several months later.