Tom/Nicole Settlement Details: PEOPLE

11/21/2001 at 11:05 AM EST

They sat down with their lawyers, according to whom they "interacted very well." They figured out who was going to own what. They agreed to share custody of their two adopted children, Isabella, 8, and Connor, 6. The children will live alternately with both parents, and Cruiseand Kidman will make joint decisions about their lives, including their education and religious upbringing. (Kidman, who was raised Catholic, has previously expressed her concern to friends that Cruise would want to raise the children as Scientologists.) And at the end they had a little hug. Who could have predicted such a low-key settlement after the nasty divorce battle raging between Hollywood's former leading couple since the split of their 10-year marriage was announced Feb. 5? Kidman got the five-bedroom Pacific Palisades spread and a multistory waterfront home on Australia's Sydney harbor. Tom got the airplanes (a $100,000 Pitts S2B, a $1.2 million Beech F90 and a $28 million Gulfstream IV jet) and the 280-acre estate in Telluride, Colo. Although romantically unattached and not dating much, Kidman does get to wear stiletto heels again in public; at 5'10" she was always towering over her 5'9" former husband. Cruise continues to console himself with "Vanilla Sky" co-star Penelope Cruz. The two have been spotted taking in a Madonna concert and even shopping for negligees. "I think this will take a while," says pal Sydney Pollack, who will produce Cruise in "Cold Mountain," the upcoming Civil War epic. "Tom is not a guy who bounces from person to person fast. It will be a relationship in its own time."

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