"They're not getting divorced," says her manager Lizzie Grubman. "She filed and withdrew. They are going to work out their issues."
Phillips, 42, filed on Friday in Santa Barbara before having a change of heart. She has been married to the 47-year-old actor, with whom she has three children, since September of 1995.
Phillips left a facility – where she was receiving treatment for anxiety – Feb. 19, just a week after checking herself in. "Chynna's been going through a very tough time, struggling personally," a source close to the couple tells PEOPLE. "Billy and Chynna have an incredibly deep and profound love."
The insider says they're set on staying married.
"Like any couple, they have ups and downs," the source says. "They're thoroughly committed to working on whatever issues they may have and they're confident things will be better than ever."
Reporting by K.C. BAKER