Tom Cruise-Katie Holmes Divorce: SETTLED! » Gossip - Tom Cruise and Katie Holmes have already settled their divorce out of court, according to reports, heading off a potentially costly and public battle.

Katie's lawyer, Jonathan Wolfe, told TMZ just moments ago that it's a done deal: "This case has been settled and the agreement has been signed."

"We are absolutely thrilled for Katie and her family and we are excited to watch as she embarks on the next chapter of her life."

Wolfe added, "We thank Tom and his counsel for their professionalism and diligence that helped bring about this speedy, amicable resolution."

Tom's lawyer, Bert Fields, also adds, "The case has been settled with a signed agreement ... Tom is really pleased we got there, and so am I."

In the last few days lawyers for both sides began quietly negotiating a legal settlement and trying to end what began as a bitter divorce war.

The one condition Tom had for settling out of court was "meaningful, significant" contact with daughter Suri, now 6; presumably he got it.

What that means in terms of legal custody is unclear. Katie filed for sole custody when she blindsided Tom with divorce papers in late June.

The couple had a prenup, so Katie's financial share was likely established before the lawyers even got together; Suri was the focal point here.

More details to follow when they become available, but we're happy for all. Even if the marriage didn't work out, the split could've been worse.

[Photo: Fame/Flynet]