Jack Osbourne and his estranged wife Lisa Stelly have finalised their divorce.

The 32-year-old star and his former flame have been locked in a legal battle for the past three months as they've been arguing over their assets following their separation, but it looks like they've finally settled things and their marriage is on the road to being dissolved.

A source told TMZ that Jack has agreed to give Lisa a ''sizeable cash payout'' as well as cough up ''significant child support'' every month and cover school fees and medical costs.

The pair have also agreed to share joint custody of their three children Pearl, six, Andy, three, and six-month-old Minnie.

Lisa filed for divorce three months ago - just weeks after they split - but Jack had been hoping that the pair could work through their differences and get back together.

However, he saw red when he paid a visit to her at their marital home last month to see her new man Michael Gabel there and he allegedly punched him in the head.

Despite his outburst, Jack reportedly came to his senses a few days later and called Michael to apologise for decking him, which the latter accepted.

Although police were called and a battery report was taken, no charges are likely to be filed because Michael does not want to take the incident any further.

Lisa and Jack took to social media in May to explain their decision to split.

They wrote in a joint statement: ''Hello! So the news about us separating has probably come as a bit of a shock to everyone. But, we just want to clear the air and share with you what's going on.

''So, first and foremost, we absolutely still love each other.

''Our family is the most important thing in our lives, and we tried everything we could for many years to make this work.

''What's best for our family right now is that we separate lovingly, and remain best friends who are committed to raising our children together.

''We had seven beautiful years of being a couple, filled with the most amazing moments and we will be eternally grateful to one another for that. We also have three wonderful children who we cherish more than anything.

''We are disappointed but feel confident that we will continue to grow our relationship as co-parents and best friends. Lots of love, Jack and Lisa. (sic)''