Terrence Howard & Ex Settle Bitter Divorce Battle

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.