1 JULY 2005

Jude Law and his ex-wife Sadie Frost have finally reached an agreement over their divorce. The estranged couple, whose very public break-up made headlines two years ago, have made an out of court settlement just three days after their hearing in the High Court began.

The pair, who have three children together, apparently reached a deal over the phone as they both wanted to avoid a drawn-out legal battle. Sources close to them say Sadie will keep their £4-million home in London's fashionable Primrose Hill along with cash payments totalling a further £2 million.

Sadie began divorce proceedings against Jude citing "unreasonable behaviour" in August 2003, but the case was repeatedly delayed as the pair thrashed out a financial agreement. The Cold Mountain star meanwhile confessed to feeling "battered and bruised" after his eight-year marriage collapsed in the wake of a series of rows and disagreements.

These days things are looking a little rosier for both parties, though. News of the divorce settlement clears the way for Jude to marry new fiancée Sienna Miller, while Sadie's romance with musician Jackson Scott is going from strength to strength.