Kristin Cavallari Reaches Joint Custody Agreement with Jay Cutler

Kristin Cavallari and Jay Cutler have reached two agreements in their ongoing divorce.

A source confirms to PEOPLE that Cutler, 37, has agreed to release the funds for Cavallari, 33, to purchase her own home. In addition, the source says the exes have come to an agreement on how to split time with their three children: sons Camden, 7, and Jaxon, 5, and daughter Saylor, 4.

In documents obtained by PEOPLE, it was ordered that Cavallari "shall be permitted to use marital funds" to purchase the new property.

The documents also state that both parties "have entered into a Permanent Parenting Plan that they attest is in the best interest of their minor children and ask the Court to approve and adopt the same as its Order."

According to the documents, until Cavallari closes and moves into the new house, the kids will remain at their current Nashville, Tennessee home, with Cavallari and Cutler switching off every other week to stay with their children.

Once the Laguna Beach alumna moves into her new residence, the kids will "spend time with each parent in their respective residence during said parent's respective parenting time."

In the documents, Cavallari and Cutler agreed to be named "joint primary residential parents," each spending 182.5 days with the kids a year. Cutler will get the kids every other Friday after school until the following Friday after school, when Cavallari's parenting time commences. The two will henceforth alternate time with the kids on a week-on, week-off basis.

They will alternate Easter and Thanksgiving, as well as fall and spring breaks, and will split the Christmas holiday.

"Nothing in this parenting plan shall prohibit the parties from deviating from the residential schedule contained herein by mutual agreement in writing or via email," the document states.

Each parent will have the right, in addition to two "unimpeded" phone calls per week, to two FaceTime or Skype calls per week "at mutually convenient days and times while the children are with the other parent."

The document also stipulates that "any decision regarding the publicity or internet use for commercial purposes of the minor children shall be made jointly."

In terms of child support, Cutler and Cavallari agreed that "both parties have sufficient assets to provide for the support of the minor children while the minor children are in their respective care," and both agreed to "equally pay the cost of any and all agreed upon extracurricular activities in which the minor children participate."

Cutler will maintain health, dental and optical insurance on the children.

The retired NFL star filed for divorce on April 21, asking for joint custody of the kids. Cavallari had initially asked for full custody, with "reasonable periods of parenting time" for Cutler.

According to a Cavallari filing, obtained by PEOPLE last week, she began looking for a new home as early as November 2019, and said Cutler did not object to her doing so. In March, Cavallari said they "realized the attempt to reconcile was not working and knew a divorce was inevitable."

Once they returned home from their recent family trip to the Bahamas and were social-distancing together at their home outside of Nashville, Cavallari claimed she told Cutler she had found a new home for herself and their kids. According to the filing, "The settlement negotiations were not going well, and she decided she would need to move out." But she claimed Cutler refused to release the money from their joint account as leverage in their custody battle.

Cavallari said Cutler told her "his attorney was going to tell their business manager to not release the funds," which she claimed is Cutler's idea of "punishing her for not accepting his offer" of a settlement, the filing said.

Cavallari insisted she "has the necessary resources" to buy the property in Franklin, Tennessee, "in cash" and signed a contract for the home on April 27. But the next day, according to the filing, Cutler "attempted to intimidate" her "into accepting his parenting plan," telling her he would block her access to the money and refuse to move out of their current house unless she agreed to his requests.

The filing also confirmed that the exes are currently swapping time at home with the kids, three days at a time.

When he filed for divorce, Cutler cited "irreconcilable differences" as the grounds of separation, while Cavallari cited both "irreconcilable differences" and "inappropriate marital conduct," claiming Cutler "is guilty of such inappropriate marital conduct as renders further cohabitation unsafe and improper."

Prior to announcing their divorce last month, Cavallari and Cutler had been discussing a split for some time, according to insiders.

"They have had divorce talks back and forth for a while," a source previously told PEOPLE. "They didn't want to get a divorce, because of the kids. Kristin has been very torn about it. When she realized that it just wasn't possible for them to stay married, her focus was on keeping things amicable."