According to the Life & Style report, multiple insiders confirmed the story to Life & Style, with one longtime friend of Tom’s saying: “Their relationship is basically over.�? Another friend adds: “They both agreed that the marriage wouldn’t work and they wanted to end it before they learned to hate each other.�?

The insiders say that Tom, 43, and Katie, 27, plan to keep up the charade of a romance until after their baby’s birth this spring. In the meantime, the couple will live in his Beverly Hills home — though sleeping in separate bedrooms — through the summer. Then, presumably, they’ll announce a separation — but Tom plans to buy Katie a home nearby so he can visit his child whenever he wishes.

“They’ll share custody,�? says the friend, who claims the couple are drawing up a legal document to provide for Katie’s and the baby’s financial well-being for life. “Tom will set up Katie and the baby,�? adds the pal.

Twice-married Cruise, and Holmes, began dating in April, but far from keeping their relationship low-key, the "Mission: Impossible" star became the butt of jokes in May after publicly declaring his passion for his new girlfriend in a manic, couch-jumping appearance on "The Oprah Winfrey Show."

He proposed to Holmes in June at the Eiffel Tower in Paris and announced their engagement the next day at a news conference reports Reuters