According to RadarOnline, the pair will share joint custody of daughter Sam, 2, and son, Charlie, 14 months.
"They have not been getting along as a married couple but there has been no conflict over the children. They both want what's best for the kids." the New York Daily News quoted a source, as saying.
The golfer's extra-marital affairs have wrecked his marriage with the Swedish model, but "the kids are close to both of them and neither Tiger nor Elin wants a battle."
The insider added: "The marriage doesn't look like it's going to make it but at least there's not going to be a custody battle.
"When they are both home, they pass the kids back and forth without any arguing. They've both done everything they can to make it as easy as possible on the children."