Rosie O'Donnell and Michelle Rounds agree to share custody of daughter Dakota

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O'Donnell said both she and Rounds are 'very happy about the outcome'
The former couple adopted the little girl following their marriage in 2012
Custody issue was the main bone of contention during their bitter eight month divorce battle

Published: 20:15 EST, 21 October 2015 | Updated: 00:10 EST, 22 October 2015

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Rosie O'Donnell and second wife Michelle Rounds have ended their ugly divorce battle and agreed to share joint custody of their two-year-old adopted daughter Dakota.

'There’s peace in the Middle East,' the former co-host of The View joked outside a New York courthouse on Wednesday, according to Us Weekly.

'It’s done. We’ve settled. We’re both very happy about the outcome,' she added.

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Finally over: Rosie O'Donnell and Michelle Rounds have reached a settlement in their divorce and will share custody of their adopted daughter. Thy're pictured in October 2014 before their split

In the eight months since O'Donnell, 53, filed for divorce from the former IT Consultant, whom she wed in 2012, the two have lobbed a series of nasty accusations at each other.

In September, Rounds, 43, was hospitalized following a reported suicide attempt.

But PageSix.com reported that after three hours of negotiations inside the Manhattan Supreme Court, the former couple were chatting amicably.

'I feel great,' a smiling Rounds said as she left afterwards.

Feeling great: Rounds, 43, was all smiles after securing joint legal custody of her daughter Dakota, two, whom she adopted with O'Donnell during their short-live dmarriage

Exes: Rounds, left, was clearly in the mood to celebrate as she left Manhattan Supreme Court with her attorney on Wednesday, while O'Donnell, right, was more low-key as she headed straight for her waiting car

Custody of their daughter was the primary issue that kept O'Donnell and Rounds facing off in court during the eight-month divorce battle.

Rounds had requested sole custody of Dakota claiming she was a more attentive parent.

TMZ reported in May that she said O'Donnell should be subject to drug tests because of her excessive drinking and marijuana usage.

She also maintained throughout the proceedings that she wasn't after O'Donnell's fortune.

'I made my first million before the age of 39, that was before I met Rosie. I don't need Rosie's money,' she told Entertainment Tonight.

Fought over: O'Donnell shared this photo of Dakota on her Instagram account on Wednesday. The snap shows the curly-haired tot pushing a pet dog in a stroller in the kitchen of the TV star's home

Happier times: Rounds, with O'Donnell in 2014, had tried to get pregnant but after she was unable to conceive the couple decided to adopt. O'Donnell shares custody of four children with first wife Kelli Carpenter

It's been a tough year so far for O'Donnell.

In February, she quit The View in order to put 'her personal health and family first.'

Her father passed away and over the summer her second eldest child Chelsea, whom she adopted with first wife Kelli Carpenter, ran away from home and was later found by police.

When she turned 18, Chelsea moved out to live with her biological mother in October and told DailyMail.com that she hadn't run away but had been kicked out by O'Donnell.

In addition, the 53-year-old gay icon is being sued by a long-time producer for The View who says she was fired for calling out O'Donnell.

Former senior producer Jennifer Shepard-Brookman lost her job after being 'profoundly and publicly disrespectful' to the co-host back in February, Page Six reported.

She was initially suspended, but then fired, after eight years with the program.

Shepard-Brookman filed a lawsuit in Manhattan Supreme Court last week, claiming she was 'scared of Rosie and thought she was going to be assaulted', according to court documents.

Tough year: O'Donnell, who quit The View in February, has also had to deal with her father's death, her adopted daughter Chelsea, 18, going to live with her biological mother and a lawsuit filed by a former ABC producer