TMZ confirmed that an agreement had been signed and is now just awaiting a signature from a judge.
The pair were notoriously private throughout their ten-year marriage
The settlement is confidential, but as fans of the pair have come to realise, the split was amicable, and it is thought that they will share joint custody of their two children, daughter Apple and son Moses.
The private couple shocked the celebrity world in March 2014 when they announced their split in a blog post entitled, "Conscious Uncoupling", on Gwyneth's website.
The pair said in a joint statement: "It is with hearts full of sadness that we have decided to separate. We have been working hard for well over a year, some of it together, some of it separated, to see what might have been possible between us, and we have come to the conclusion that while we love each other very much we will remain separate.
"We are, however, and always will be a family, and in many ways we are closer than we have ever been. We are parents first and foremost, to two incredibly wonderful children and we ask for their and our space and privacy to be respected at this difficult time."
Gwyneth Paltrow and Chris Martin have also been seen holidaying in the Hamptons
They concluded: "We have always conducted our relationship privately, and we hope that as we consciously uncouple and coparent, we will be able to continue in the same manner."
The two have remained friends and are regularly spotted together grabbing coffee or dinner together.
They also spent Valentine's Day together on a family beach holiday, where Gwyneth and Coldpaly frontman Chris enjoyed each other’s company as they relaxed on the beach, walking arm-in-arm along the sandy shores and sitting down for some fresh air