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The suspense of the divorce between Tom Cruise and Katie Holmes is over.

The two settled out of court and it seems that life must go on now.

Katie was spotted with her mom Kathleen and her six-year old daughter Suri out and about at the Chelsea Piers in New York yesterday.

Katie seemed to be in great spirits and this might be due to the fact that her divorce settlement dictates that she will get sole custody of her only child with Tom.

Katie’s lawyer Jonathan Wolfe spoke to TMZ saying, ‘This 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’.

Holmes, 33, was dressed in a short and sweet blue dress cinched in at her waist with a skinny belt, and a pair of bright green shoes.

Katie Holmes

Her cute daughter Suri wore a rainbow colored dress and was seen skipping along.

Although Katie may have sole custody of Suri, Cruise will still be entitled to significant custodial time with his daughter.

Suri and Katie are currently living in New York and when Suri visits Tom, she will be accompanied by her own nanny and team of bodyguards.

Cruise is also expected to pay a ‘substantial’ sum to his soon-to-be third ex-wife in property, assets and child support.

There have been many reports that Katie used a disposable cell phone to arrange her divorce from Tom and I suppose that even if she did, Katie must have had a good reason for this.

In the meantime, Tom Cruise, 50, is getting on with his life and he has been seen on the set of his new movie, Oblivion.

His son Connor, 17, jetted to Mammoth Lakes, California, to be with his dad and Tom was spotted without his wedding ring smiling and chatting to his son and the crew between takes.

Connor was with his father on location in Iceland when news broke of Katie Holmes’ shock decision to end her five year marriage to the star on June 29.

Apparently Tom was surprised with Katie’s decision for a divorce and he went on to spend a sober 50th birthday with his son and daughter Isabella in Los Angeles on July 3.

Today Katie was spotted taking Suri to the Central Park Zoo in New York with her mom.

Tom is understood to have not seen Suri since Katie filed for divorce, but speaks to her regularly over the phone.

There has been a lot said that Scientology had nothing to do with Katie’s decision to leave Tom but it seems Katie has made it clear that she is turning her back on Scientology and returning to Catholism by signing up to a local church in New York.

Both Connor and Isabella who are Tom’s kids from his marriage to Nicole Kidman are devout Scientology followers and when Tom filed for divorce from Nicole in 2001 after 11 years of marriage, the split had a profound effect on her relationship with their two adopted children.

Nicole, who now also has two young daughters with her new husband Keith Urban, has hinted at her heartbreak over the distance between them saying, ‘They live with Tom, which was there choice. I’d love them to live with us but what can you do.’

US Weekly reported that Katie had sought counsel from Nicole, 45, in an effort to avoid the same fate as the Australian actress, who now rarely sees her kids.

‘They’ve spoken over the last few weeks,’ an insider is quoted as telling Us Weekly magazine.

‘Nicole has been supportive, saying she’s been through it too and to hang in there.’

Well whatever the story, we wish both sides a lot of happiness….