Madonna and Guy Ritchie reach divorce deal

MADONNA and Guy Ritchie have reached agreement on their divorce - with the British film director refusing to take a penny of the pop star's cash.

An announcement could come by the end of the month, a source close to the negotiations has told the Evening Standard.

Madonna will walk away from the eight-year marriage with her fortune, estimated at £300million, still intact. Although Ritchie, himself believed to be worth £30 million, was entitled under English divorce law to as much as half her wealth, sources suggest he has done a "Piper" - a reference to Billie Piper, the actress who divorced the broadcaster Chris Evans without asking for anything.

The stumbling block in the split had been over where Ritchie and Madonna's children will now live. Madonna, 50, wished to take the children back to New York while Ritchie, 40, wanted to keep his sons in London, where they have grown up.

The source said a compromise had now been reached which will see the two boys - Rocco, eight, and three-year-old adopted David - dividing their time between Britain and the US. Madonna's daughter Lourdes, by another relationship, will continue to live with her.

The source told the Evening Standard: "It will be all over by the end of the month. I am sure it will be announced by then. The priority for him has always been the children. Ritchie 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 Ritchie has done the same."

A second source said: "Ritchie could have taken her to the cleaners. He is a very honourable man to have walked away."

Sources said the announcement of the settlement would not include any financial details.

The couple only officially announced they were splitting last month after several weeks of speculation. The speed with which they have come to a deal will come as a surprise because it follows reports that the split was acrimonious and therefore likely to drag on.

The two female lawyers acting for the couple - Helen Ward and Fiona Shackleton - are said to have worked round-the-clock to reach a settlement. Lady Ward, the wife of a Court of Appeal judge and who acted for Ritchie, had brought on board the leading children's barrister Stephen Cobb QC to negotiate where the children will reside.

Mrs Shackleton had used Nicholas Mostyn QC who is an expert in the financial intricacies in divorce cases. Mrs Shackleton and Mr Mostyn represented Sir Paul McCartney in his long, drawn-out divorce from Heather Mills, that eventually cost the former Beatle just under £25 million.

One source said: "It's indicative of Ritchie's priorities that he brought in Stephen Cobb who is a specialist children's QC. Put it this way, you wouldn't go for Cobb if you were after a huge financial settlement."

Both sides will be relieved to have avoided the huge costs incurred by McCartney as well as the full glare of the media spotlight. It has been suggested the full cost of McCartney's divorce from Ms Mills, a former glamour model, in paying lawyers' and other professional fees, could have been as high as £10 million.

In contrast Madonna and Ritchie will have saved themselves millions by reaching a speedy settlement.

The divorce has been an unwelcome distraction for the couple.

Madonna is on a world tour and is due to perform in Philadelphia tonight. Ritchie is making his latest feature film Sherlock Holmes, starring Robert Downey Jr and Jude Law.