The Batman Begins beauty cited "irreconcilable differences" for the split when she lodged papers in New York on 28 June (12) and requested sole legal custody and "primary residential custody" of the couple's six-year-old daughter, Suri.
Last week (ends08Jul12), Cruise's attorney Bert Fields claimed the superstar was in no rush to file his own divorce papers to counter Holmes' demands, telling the BBC, "Tactically we can't say where Tom will file a divorce case and if he'll be seeking joint custody of Suri. We are letting the other side play the media until they wear everyone out and then we'll have something to say."
However, the estranged couple has since negotiated a deal to ensure the legal proceedings go smoothly as they work to put their five-year marriage behind them.
Holmes' lawyer Jonathan Wolfe says, "The case has been settled and the agreement has been signed. We are thrilled for Katie and her family and are excited to watch as she embarks on the next chapter of her life... We thank Tom's counsel for their professionalism and diligence that helped bring about this speedy resolution."
Meanwhile, Cruise and Holmes have also released a joint statement, insisting their main focus will always be their young child: "We are committed to working together as parents to accomplish what is in our daughter Suri's best interests. We want to keep matters affecting our family private and express our respect for each other's commitment to each of our respective beliefs and support each other's roles as parents."
Details about the divorce settlement have been kept under wraps, but sources tell People.com that Suri will likely live with her mother in New York, while Cruise has been granted generous visitation rights.
Holmes has been spotted out and about in the Big Apple since filing for divorce, while Cruise has maintained a low profile since returning to Los Angeles from Iceland, where he was filming a new movie. He spent his 50th birthday last Tuesday (03Jul12) at home in Beverly Hills with his adopted teenage kids, Connor and Bella, from his second marriage to actress Nicole Kidman.