Katie Holmes and Tom Cruise discussing divorce settlement -- reports

tom-cruise-katie-holmes-divorce-settlement-talks-gi.jpgIn a development that may disappoint celebrity watchers, Katie Holmes and Tom Cruise are reportedly talking about an out-of-court settlement for their divorce case.

Holmes spent several hours at the offices of her attorneys in New York Friday (July 6), and People reports her lawyers and those for Cruise have been talking for a few days about a settlement that would avoid a public trial.

"Neither one of them wants this to be hashed out in public," a source tells the magazine.

Pics: Tom Cruise and Katie Holmes through the years

Separately, TMZ reports "calm" negotiations between the two sides involving issues such as custody of Cruise and Holmes' daughter, Suri, and child support. Neither side has plans to go to court in the near future, the site says.

The reports of settlement talks comes a day after Cruise's lawyer, Bert Fields, said Cruise might file a counterclaim to Holmes' divorce action. "Tactically we can't say where Tom will file a divorce case and if he'll be seeking joint custody of Suri," Fields said.

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