The 29-year-old Virginia native agreed to a new child support deal that includes a new house for Guzman and Royalty.
According to published reports, Brown will "significantly" increase his monthly child support which currently pays Guzman $2,500 a month.
The pop singer didn't meet Nia's demand for $21,000 a month, but he did agree to meet her somewhere between that amount.
Brown will also pay Guzman's legal fees, according to TMZ.
In her court documents, Guzman said Brown only has custody of Royalty 20 percent of the time. She also claimed Royalty was headed for a life of crime.
The toddler reportedly stole $300 from her grandmother's purse to help her mom pay the rent on their apartment, according to court records obtained by The Blast.
But Brown argued that, in addition to the $2,500 a month, he paid $1,770.98 a month on vacations and travel for Guzman, $1,516.59 for gifts and entertainment, and another $419 for "activities".
Brown sired Royalty with Guzman while he was in a longterm relationship with Guzman's bestie Karrueche Tran.