Tom Cruise To File For Divorce In California

"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," a source says.

Team Cruise does appear to have the the law on his side about where the divorce proceedings will take place. Under New York law, the residency requirements for divorces to take place in that state, "The marriage ceremony was performed in New York and either spouse is a resident of the state at the time of the commencement of the action for divorce and resided in the state for a continuous period of one year immediately before the action began. The couple lived as husband and wife in New York and either spouse is a resident of the state at the time of the commencement of the action for divorce and resided in this state for a continuous period of one year immediately before the action began. The grounds for divorce occurred in New York and either spouse is a resident of the state at the time of the commencement of the action for divorce and resided in the state for a continuous period of one year immediately before the action began."

Cruise and Holmes were privately married in L.A. and then had a lavish civil ceremony in Italy.

Cruise's lawyers "will state in their response to Katie's divorce petition in New York that she didn't reside continuously in New York for a year, as the law states. Yes, they do have a home in New York, but Tom will argue that Los Angeles is where they live, period," the insider says.

Cruise and Holmes have homes in Los Angeles, New York City and Telluride.