Terrence Howard and his estranged wife have called a truce in their nasty divorce -- finally striking a settlement that puts an end to their divorce war once and for all ... this according to court docs.
Terrence and Michelle Ghent sealed the deal August 16th -- dividing up the goodies, as in money and other stuff.
Michelle filed for divorce in February 2011 -- and the split was notoriously rancorous ... with Michelle accusing Terrence of viciously beating her ... and Terrence accusing her of being a loathsome racist.
Michelle had obtained a restraining order against Terrence last year -- but per their new agreement, that restraining order will expire next week and she will not seek to make it permanent.
Terrence and Michelle were married in 2010. They have no kids.