Olivia Wilde and Jason Sudeikis are BACK on good terms after ugly custody battle as they hug it out

Olivia Wilde and her ex-fiancé Jason Sudeikis appeared on good terms when they were spotted together in Los Angeles this week, over two years after they ended their seven-year engagement in 2020.

Sudeikis, 47, and Wilde, 38, emerged from a meeting together and were seen chatting on the sidewalk, before gathering each other into an embrace and going their separate ways.

The pair have waged an ugly custody battle over their children Otis, eight, and Daisy, six, overlapping with Wilde’s relationship with Harry Styles, whom she directed in last year’s film Don’t Worry Darling.

Affection: Olivia Wilde and her ex-fiancé Jason Sudeikis appeared on good terms when they were spotted together in Los Angeles this week, over two years after they ended their seven-year engagement in 2020

Bonhomie: Sudeikis, 47, and Wilde, 38, emerged from a meeting together and were seen chatting on the sidewalk, before gathering each other into an embrace and going their separate ways

Affection: Olivia Wilde and her ex-fiancé Jason Sudeikis appeared on good terms when they were spotted together in Los Angeles this week, over two years after they ended their seven-year engagement in 2020

History: The pair have waged an ugly custody battle over their children Otis, eight, and Daisy, six, overlapping with Wilde's relationship with Harry Styles, whom she directed in the recent film Don't Worry Darling

History: The pair have waged an ugly custody battle over their children Otis, eight, and Daisy, six, overlapping with Wilde’s relationship with Harry Styles, whom she directed in the recent film Don’t Worry Darling

Styles, whose involvement with Don’t Worry Darling was at the center of dramatic rumors in the run-up to the film’s release, split from Wilde in November after a romance that spanned nearly two years.

Wilde and Sudeikis were glimpsed the following month having what appeared to be a tense conversation after they left a two-hour meeting together in Hollywood. 

However they appeared more at ease with one another during their sighting this week, chatting with one another and indulging in an affectionate hug. 

They expressed goodwill as they walked away from one another, with Sudeikis throwing a peace sign into the air and Wilde smiling cheerfully while strolling across the parking lot.

Backdrop: Styles, whose involvement with Don't Worry Darling was at the center of dramatic rumors in the run-up to the film's release, split from Wilde in November after a romance that spanned nearly two years

Backdrop: Styles, whose involvement with Don’t Worry Darling was at the center of dramatic rumors in the run-up to the film’s release, split from Wilde in November after a romance that spanned nearly two years

Changing times: Wilde and Sudeikis were glimpsed the following month having what appeared to be a tense conversation after they left a two-hour meeting together in Hollywood - a far cry from their latest sighting there (pictured)

Changing times: Wilde and Sudeikis were glimpsed the following month having what appeared to be a tense conversation after they left a two-hour meeting together in Hollywood – a far cry from their latest sighting there (pictured)

However: They appeared more at ease with one another during their sighting this week, chatting with one another and indulging in an affectionate hug

However: They appeared more at ease with one another during their sighting this week, chatting with one another and indulging in an affectionate hug

Off they go: They expressed goodwill as they walked away from one another, with Sudeikis throwing a peace sign into the air

For her part: Wilde was seen smiling cheerfully while strolling across the parking lot

Off they go: They expressed goodwill as they walked away from one another, with Sudeikis throwing a peace sign into the air and Wilde smiling cheerfully while strolling across the parking lot

The drama between them during their legal battle has seeped out into public view multiple times, including when she was infamously served with custody papers while onstage at CinemaCon last April.

Wilde called the incident ‘an attack on her workplace’, but said she was not surprised at it happening because there was a ‘reason’ she left her relationship with Sudeikis. 

In court documents obtained by DailyMail.com, she argued that the decision to serve her onstage in front of an audience was a bid to ‘threaten’ and ’embarrass’ her. 

Sudeikis filed suit against his ex in New York City Family Court in October 2021, and the dispute has largely revolved around where the children would live.

Remember when: The drama between them during their legal battle has seeped out into public view multiple times, including when she was infamously served with custody papers while onstage at CinemaCon last April

Remember when: The drama between them during their legal battle has seeped out into public view multiple times, including when she was infamously served with custody papers while onstage at CinemaCon last April

History: Wilde called the incident 'an attack on her workplace', but said she was not surprised at it happening because there was a 'reason' she left her relationship with Sudeikis

Details: In court documents obtained by DailyMail.com, she argued that the decision to serve her onstage in front of an audience was a bid to 'threaten' and 'embarrass' her

History: Wilde called the incident ‘an attack on her workplace’, but said she was not surprised at it happening because there was a ‘reason’ she left her relationship with Sudeikis

While he wanted them to live in Brooklyn, Wilde was hoping to have them stay in Los Angeles and possibly relocate to London, where her then-boyfriend Harry Styles was living.

In a legal filing signed August 5 last year, a judge ruled ‘New York was not the home state of the subject children’ and that rather ‘California was the children’s home state.’

‘Therefore, for the reasons stated on the record on July 15, 2022, respondent’s motion to dismiss the custody petitions filed on October 21, 2021 is granted,’ the filing, which was reviewed by Page Six, stated.

The court determined  that ‘New York does not have jurisdiction to hear the custody petitions’ because it is not Otis and Daisy’s home state.

Looking back: Sudeikis filed suit against his ex in New York City Family Court in October 2021, and the dispute has largely revolved around where the children would live

Looking back: Sudeikis filed suit against his ex in New York City Family Court in October 2021, and the dispute has largely revolved around where the children would live

Hashing it out: While he wanted them to live in Brooklyn, Wilde was hoping to have them stay in Los Angeles and possibly relocate to London, where her then-boyfriend Harry Styles was living

Hashing it out: While he wanted them to live in Brooklyn, Wilde was hoping to have them stay in Los Angeles and possibly relocate to London, where her then-boyfriend Harry Styles was living

Wilde filed a petition to ‘determine parental relationship in Superior Court of California, in LA’ in May, the filing noted. Her legal team moved to legally dismiss Sudekis’ custody case on May 18.

Experts alleged at the time that the custody battle was likely to proceed in California.

In Wilde’s motion to dismiss Sudeikis’ suit, the actress claimed she and he had initially agreed to send their kids back to school in Los Angeles for the upcoming school year because Sudeikis was due to wrap up the final season of Apple TV series Ted Lasso, which had required him to be in London.

‘Recently, however, Jason decided that he wanted to go to New York for the next year while he is not working, and wanted the children to be with him there during this time off,’ the actress said in the filing. ‘When I did not agree, since the children have not lived in New York for several years, Jason filed these papers.’ 

Jurisdiction: In a legal filing signed August 5 last year, a judge ruled 'New York was not the home state of the subject children' and that rather 'California was the children¿s home state'

Jurisdiction: In a legal filing signed August 5 last year, a judge ruled ‘New York was not the home state of the subject children’ and that rather ‘California was the children’s home state’

Looking ahead: Experts alleged at the time that the custody battle was likely to proceed in California

Looking ahead: Experts alleged at the time that the custody battle was likely to proceed in California

Wilde, who began dating Styles in January 2021, argued that the children have spent most of the last four years in Los Angeles or London, attending schools in both cities.

Wilde was famously served the court documents on April 26 in the middle of a presentation for 4,100 film industry executives about her thriller Don’t Worry Darling when she was awkwardly handed a manila envelope by a court process server.

The bizarre moment sparked furious speculation among attendees and reporters at the annual gathering of cinema owners and Hollywood studios about the envelope’s contents.

Sudeikis has maintained that he did not know Wilde would be served the papers in such a public and humiliating way.