Holmes, Cruise Sign Divorce Settlement

UPDATE: It looks like Tom Cruise and Katie Holmes will avoid what was shaping up to be a potentially messy—and very public—court battle.

Holmes attorney Jonathan Wolfe said Monday that the divorce has "been settled and the agreement has been signed." The news was first reported by TMZ and later confirmed by CNN. "We are thrilled for Katie and her family and are excited to watch as she embarks on the next chapter of her life," Wolfe told the gossip website.

No word yet on the details of the settlement. Holmes had reportedly been seeking sole custody of the couple's daughter, Suri. The now-former couple released a statement Monday saying they are currently "working together" in the "best interests" of their daughter.

Friday, June 29 at 2:54 p.m.: Looks like Katie Holmes was the one who filed for divorce.

According to ABC News, Cruise's publicist released a statement Friday saying "Kate has filed for divorce and Tom is deeply saddened and is concentrating on his three children." The statement continued, "Please allow them their privacy to work this out." Holmes filed for divorce on Thursday.

Inevitably, unnamed sources close to the unhappy couple have begun to provide some speculation fodder. ABC News has this:

A source close to Cruise told ABC News that Holmes' filing came as a "complete surprise, as was her asking for "sole custody" of Suri.

As Time explains, Cruise and Holmes have a prenuptial agreement that would entitle her to $15 million. And that's before even thinking about the result of a possible custody battle between the two.

Over at Slate's XX Factor, Libby Copeland breaks down why the divorce will be bad for Scientologists.

Friday, June 29: Tom Cruise and Katie Holmes are divorcing, People reported on Friday. They've been married five years.

Holmes's attorney, Jonathan Wolfe, had this to say to People:

"This is a personal and private matter for Katie and her family," adding, "Katie's primary concern remains, as it always has been, her daughter's best interest."

Cruise, 49, and Holmes, 33, have a daughter, Suri, who is 6. This was the first marriage for Holmes and the third for Cruise, who has two other children.

We'll update with more info as we see it. Meanwhile, check out a few pieces on the couple from the Slate archives: Dana Stevens on Tom and Katie's scary birth plan; Brian Palmer explains what Suri Cruise is learning at her Scientology-influenced school; and Slate reads the unauthorized biography of Tom Cruise so you don't have to.