TMZ's latest report adds credence to the speculation. It claims that Holmes's assertion that the marriage was kaput at least six months ago baffled Cruise, "because he had 'no idea' she was about to file for divorce".
The webloid also reports that Holmes claims in the divorce docs that she and the Rock of Ages star have lived in New York City for "at least two years", a deliberate move which will help her establish legal residency in the Big Apple.
Reports claim that Holmes filed for divorce in New York because she believes the courts are more likely to grant her sole legal custody and primary physical custody of their daughter.
But as RadarOnline previously reported, Cruise will fight Holmes's residency claim, and will push for the divorce court's geography to switch to California.
"Tom will file a response in New York, asking that the divorce proceedings be halted in the Big Apple because California is the proper venue for the matter to proceed. Team Cruise is going to assert that Katie doesn't meet the residency requirements to file in New York, and that both live full time in California, specifically Los Angeles," a source said.
"At the same time, Tom will file for divorce in California, and will most request joint custody of Suri. There is absolutely no way that he is going let Katie have sole custody. The lines are being drawn, and this is going shape up to be a very contentious custody battle."
Meanwhile, as Cruise takes some time to cool off in Iceland after the shock divorce news, for Holmes, the show must go on.
The erstwhile Dawson's Creek star was spotted leaving a taping of Project Runway: All Stars - without her wedding ring - in New York City yesterday.
A smiling Holmes was on the set filming a guest-judging gig on the show.
"She did great," show judge Isaac Mizrahi told People.com after the six-hour shoot.
'Katie wants her life back...'
On Monday, Holmes fired her publicist and re-appointed her previous one at BWR Public Relations - the company she was with before she met Cruise.
Holmes wants her career back after it had been heavily controlled by Cruise, according to speculation.
Us Weekly claims that Cruise nixed the idea of Holmes doing a Dawson's Creek reunion movie.
"[Producers] were begging her to sign on for a reunion movie. Tom said, 'Absolutely no way' and thought going backward would be bad," an insider said, adding that Holmes "didn't care how 'low-brow' he thinks Dawson's Creek is. She wanted to do the movie and reconnect with her fans. And have fun - something she rarely does anymore."
According to an 'insider', Cruise also wouldn't allow her to do films that included "sexually compromising scenes, largely because the Scientology folks objected."
Eyes Wide Shut never happened.
"Katie wants her life back," the source added.
The actress is due to star alongside Chace Crawford in the upcoming film Responsible Adults which starts filming later this year, according to her rep.
In other developments...
* Did Holmes embrace Scientology after marrying Cruise?
* Talk that Holmes will be paid US$15 million for her five-year union with Cruise has been debunked. The couple signed a pre-nuptial agreement before they got hitched, but a new report suggests it more or less cuts Holmes out of Cruise's fortune.
The suggestion is that she "will walk away with what she brought into the marriage...and hardly anything else".
* Studio supports Cruise: Film studio Paramount has offered its public support to the actor, and says it doesn't believe the divorce will affect his career.
* Cruise will file a rival divorce case, his lawyer has announced. But here's the kicker - he won't reveal where.
"Tactically we can't say where Tom will file a divorce case and if he'll be seeking joint custody of Suri," Bert Fields told the BBC's Newsbeat.
Fields said he was allowing Holmes's legal team to "play the media" before Cruise will offer his take on the split.
"We are letting 'the other side' (Katie and her team), play the media until they wear everyone out and then we'll have something to say," he said.
"It's not Tom's style to do this publicly. He is really sad about what's happening."
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