Stephen Collins -- DIVORCE SETTLED ... Confession Tape Under Lock and Key

We've now obtained the divorce settlement, and it provides every copy of the Collins' audio in which he confesses to child molestation must be destroyed, with the exception of the original -- which is now in Grant's possession. Grant must deliver the tape to Collins' lawyer, Shawn Holley, who will keep it under lock and key for 10 years and only release it if there's a subpoena.

As for the rest of the settlement, it's pretty much a 50/50 split. As we previously reported the pot is worth around $14 million.

Stephen Collins and Faye Grant have settled one of the nastiest celebrity divorces in memory ... TMZ has learned.

Collins, Grant and their lawyers spent the last 4 days trying to hammer out the settlement, to avoid what was certain to be an ugly, public trial set for February 9th.

Both Collins and Grant were ready to address the audiotape in which Collins confesses to molesting and/or exposing himself to 3 young girls. Grant threatened to raise the issue because she didn't want her settlement compromised in case he got sued, and he says the tape has made him unemployable and therefore he should be socked with a big spousal support tab.

But they worked it out, down to who gets what furniture.