Court documents obtained by the press revealed that the 1959 Martin D-18E, which the Nirvana frontman and lyricist used in a performance for MTV's Unplugged in November 1993, will remain in the possession of Silva.
Photographs from the scene of Kurt Cobain's death will not be released to the public, the Washington State Court of Appeals ruled Tuesday.
Silva had previously claimed that Frances had given him the guitar as a wedding gift, meanwhile she contested that she would never gift away a family heirloom.
Isaiah Silva is reportedly allowed to keep the instrument in his divorce settlement with the Nirvana icon's daughter.
She has since made a decision to hand over the guitar as a way of settling the divorce proceedings quickly without a trial.
Cobain will keep the couple's home and won't pay spousal support to Silva, according to TMZ. Lee, described as a "conspiracy theorist" in court documents, has independently researched Cobain's death for years, propogating the theory that Cobain was in fact murdered.
Frances Bean Cobain forced to give up dad Kurt's guitar in divorce
KURT Cobain's daughter Frances Bean has been forced to hand over one of her dad's famous guitars as part of her divorce.
Having researched Kurt's death for years and even hosting a public access TV show about it, Lee sought access to the pictures under Washington State's Public Records Act.
Asked what her late father, who took his own life in 1994, would think of her music, she said: 'I don't have an answer for that because I don't want to speak on someone else's behalf.
The couple had been together for roughly five years and married for less than two when Frances chose to file for divorce back in March 2016.
Though Frances Bean has lost the iconic piece of music history, it's clear she's forging her own way when it comes to the business, recently sharing her first ever original song and suggesting she is set to release her own music.