"We just really dealt with it in a very sweet and honourable way. I don't know. We just love each other", the 42-year-old admitted on Watch What Happens Live.
Speaking on the American TV show on Sunday, he added: "Even though the relationship didn't work out, we wanted to still remain friends and treat each other with respect and have a great relationship for our daughter."
Courteney Cox and David Arquette in 2011
Courteney, who starred in hit TV show Friends and David married in 1999, and have a 10-year-old daughter, Coco.
"In the negotiating process of a divorce, we did it with a mindful head: 'What are you cool with?' 'OK, I'm cool with that, too.' There it is," the Scream star said. "There was no hair pulling."
David also shared a few facts about his former co-stars when asked to play a game titled Arquette Roulette. When the needle landed on Courteney, he said, "She's from Alabama. I don't know if a lot of people know that. Not that that's scandalous! She actually is such a sweet person. She doesn't do anything wrong, I guess."
David and his fiancee Christina McLarty
The needle also landed on Drew Barrymore, and David revealed that the pair used to date, "We used to date when we were very young kids. Well, not little kids!"
He also elaborated on his relationship with the former child star, adding; "She's just one of the sweetest, kindest people in Hollywood. She always has been, and she always will be. She's just a lovely, sweet person. We used to run around and just be silly."
In July this year David proposed to his girlfriend of several years Christina McLarty. The couple have a two-month-old son, Charlie.