Lawyers for the king of Spain's elder daughter and Jaime de Marichalar confirmed late on Wednesday that they have both signed divorce papers, "by mutual agreement".
A joint statement from both legal representatives adds that the pair - who are parents to 11-year-old Felipe Froilan and Victoria Federica, nine: "maintain a fluid dialogue on all matters relating to the common interest of their children."
Also, both: "testify to the affection and regard that the family of Her Royal Highness the Infanta holds towards Don Jaime, as has been clear over the last two years."
The announcement, which has been expected for weeks, comes after months of intense negations between the couple over Jaime's future role with the royal family and custody arrangements for the pair's children.
The youngsters will live with their mother, and their father will have full access rights.
No one could have predicted that the couple's lives would end up taking different roads when they wed in Seville in 1995, in what was the first royal wedding in Spain in nearly 90 years.
They tried hard to save their marriage for the sake of their children, but it wasn't meant to be. Two years after announcing their "temporary separation" the couple have taken steps to formally end their union.