The 40-year-old former glamour model has reportedly told the former stripper - with whom she has two children Jett, four, and Bunny, three - that she wants to draw a line under their turbulent five-year marriage once and for all so they can both move on.
A source told The Sun Online: ''Katie thinks that they should be able to end the marriage quickly and quietly with a £300 online divorce, and put the idea to Kieran.
''She doesn't see the point in spending money and time on lawyers and a huge divorce case when they could do it online.''
But the 31-year-old builder - who moved out of their family home earlier this year - has reportedly refused to do anything online because there are still things to ''sort.''
The insider explained: ''After all, they both know the marriage is over and there's no way back now. But when she suggested it to Kieran he refused flat out.
''To him, it's not that simple and there are a lot of things to sort out between them. He doesn't want to be short-changed in the divorce and end up not getting what he's owed. He doesn't think something as huge as a marriage should be ended by an online form. As far as Kieran's concerned, she needs to do things properly.''
Katie called time on their relationship last year when she caught Kieran - who has been treated for sex addiction - in bed with their nanny Nikki Brown.
The 'Loose Women' panellist recently said she feels like she's ''wasted'' the last five years of her life because she should never have reconciled with Kieran after they previously split when he had an affair with her friend Jane Pountney.
She said: ''He'll never change and I just can't stand him. I should have split up with him when he first cheated on me but I was so determined to make it work.
''Right now, I feel like I've wasted five years of my life with him.''
Katie - who also has three other children, Harvey, 16, Junior, 13, and 10-year-old Princess, from past relationships - is now dating Kris Boyson.
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