Nicole Kidman reportedly feels "refreshed and optimistic" as her divorce from Keith Urban is behind her

A source told People: "Nicole spends a lot of time with her girls. She loves family time."

The Babygirl actress - who divorced Keith, 58, citing "marital difficulties and irreconcilable differences" - spent Christmas and New Year's in her native Australia, and she is now back in Nashville with her children.

The insider added: "She is refreshed and optimistic about the new year. They're all settling back into their routine. Things have been calm."

And Nicole is preparing for a busy year, which includes the September release of her and 61-year-old actress Sandra Bullock's sequel to their 1998 fantasy-romance film, Practical Magic.

The source said: "She's looking ahead to a busy and exciting year professionally too, with several projects coming up."

Last November, Nicole admitted to Wicked: For Good actress Ariana Grande, 32, in a chat for Interview magazine that she was "hanging in there" amid her split from the Somebody Like You hitmaker.

Also, that month, a source claimed to People that Sunday and Faith split their time amicably.

The insider said: "Their daughters live with Nicole, but spend as much time with Keith as they want. There is no drama."

Nicole and Keith finalised their divorce in a Nashville court on January 6.

According to documents obtained by Us Weekly, the Big Little Lies actress will have primary custody of their daughters - having them for 306 days, while country star Keith will have them for 59 days of the year. No monthly child support will be paid.

Nicole and the Blue Ain't Your Colour hitmaker - who, according to a clause, has pre-paid "child support obligations" - have agreed not to speak badly of each other or the other parent's families.

They will also "encourage each child to continue to love the other parent and be comfortable in both families".

The actress - who signed on September 6, while Keith did it on August 29, 2025 - and the singer were both required to attend a parenting seminar within 60 days of the divorce filing.

In addition, they will each retain their own assets, suggesting they had a pre-nuptial agreement in place.