Jessica Simpson's parents are splitting the baby in their divorce ... going halfsies on Jessica's massive life insurance policy.

TMZ has obtained the legal docs outlining the terms of Joe and Tina Simpson's divorce -- and Jessica's life insurance policy is just the tip of the iceberg.

Joe and Tina have also agreed to split their interest in Jessica and Ashlee's management fees ... a huge number in itself.

As for the couple's remaining division of property ... here's the breakdown:

Joe gets half of their Sherman Oaks house, all his personal effects and bank accounts, the 2012 Mercedes SLS and 2011 Mercedes S63, and a bunch of stocks ... including Twitter. He also gets $237,285 in an escrow account from the sale of their other L.A. home.

Tina gets the house in Waco, TX, over ten bank accounts, a 2010 Range Rover Sport, 2011 Porsche 997 coupe, and other stuff.

TMZ broke the story ... Joe and Tina's divorce was just finalized after 34 years of marriage.

Jessica Simpson's parents are officially single and free to mingle ... their divorce is final ... TMZ has learned.

The judge's final touches end a 34-year marriage ... as for why the marriage fell apart -- the speculation continues.

Tina cited "discord or conflict of personalities" when she hit Joe with the papers in Texas last year. As TMZ reported ... Joe became angry after some media speculated he was gay ... and Joe fired back ... calling the reports "ridiculous."

No details yet on who got what ... we've reached out to the family rep -- so far no word back.

Rumors be damned ... a frustrated Joe Simpson is telling friends and colleagues the stories that he's switched teams are absurd.

There have been several reports out recently that Joe has told his family he's gay and that's why his marriage fell apart. There are also reports about several guys he's rumored to be dating/hooking up with.

Sources who speak with Joe tell TMZ ... Jessica Simpson's daddy says it ain't so ... that the stories are "ridiculous."

The people we spoke with are split -- some believe him, and some think he's just not ready to come out publicly.

So we gotta ask ...

Just days after news broke of the demise of his marriage, Jessica and Ashlee Simpson's newly single father Joe Simpson was spotted out in L.A. on Thursday sporting a much more, er, youthful look.

Doing his best Ellen DeGeneres impersonation, the 54-year-old rocked blonder highlighted locks, a fitted yellow sweater, black skinny jeans and matchy matchy spiffy kicks.

As TMZ reported, Joe's wife Tina Simpson filed for divorce last month -- after being legally hitched for 34 years -- claiming their marriage has become "insupportable because of discord or conflict of personalities."

Hopefully, Joe can rebound with someone more to his liking.

Jessica Simpson's mother Tina has filed for divorce from Jessica's dad Joe.

Tina filed the papers in Texas last month, claiming, "The marriage has become insupportable because of discord or conflict of personalities."

Tina and Joe were married in 1978. They have no minor children.

In the docs, obtained by TMZ, Tina claims she has separate property from Joe and wants to keep it. It's unclear what that property is.

In the county where Tina filed, there are specific rules about how divorcing spouses have to behave toward each other during proceedings -- they can't curse at each other, harass each other over the phone, or physically attack each other ... basically they HAVE to act like civilized adults.

If one spouse violates the rules, they could be found in contempt of court.

Joe  filed a response to Tina's divorce petition days later, insisting Tina get nothing from the split.

Joe and Tina both played a pivotal role in turning their daughters Jessica and Ashlee into pop superstars.

A rep for the family just released a statement, saying, "It is an amicable split and there is no third party involved. Any other related allegations are completely false. The family appreciates your respect for their privacy at this time."