Madonna and Guy Ritchie reach divorce settlement

Madonna and Guy Ritchie have reportedly reached a divorce settlement.

The pair are scheduled to have a hearing at the London High Court's Family Division this morning (21.11.08), but are not expected to appear. As they have already reached an agreement it is expected to be short and private.

The 'Sherlock Holmes' director - who announced his divorce from Madonna last month - has allegedly agreed to walk away from the marriage without touching any of the 50-year-old singer's reported £300 million fortune.

Madonna and Guy - who raise three children together - have also worked out custody rights to 12-year-old Lourdes, Rocco, eight, and adopted three-year-old son David.

The former couple were said to have disagreed on where their children should live - with Madonna insisting they should stay with her in New York and Guy adamant they should remain in London with him. They have reportedly now decided Rocco and David will live with Guy for the majority of the time, while Lourdes, Madonna's daughter from a previous relationship, will live with the pop superstar.

A source close to the negotiations said: "It will be all over by the end of the month. I am sure it will be announced by then. The priority for Guy has always been the children.

"Guy has not wanted her money. He has done exactly what Billie Piper did when she divorced Chris Evans. She walked away without any of his money, much to her credit. Guy has done the same. He is a very honourable man to have walked away."

An announcement on the settlement is expected to be released by the end of the month.