Megan Fox and Brian Austin Green have a "peaceful co-parenting relationship"

A source told E! News: "Things have calmed down and are going a lot smoother. Brian has accepted it's over for good with Megan and has moved on. It's allowed for a much more peaceful co-parenting relationship."

Both Brian, 47, and Megan, 35, have moved on to new relationships, with Megan dating her 'Midnight in the Switchgrass' co-star Machine Gun Kelly, 31, while Brian is loved up 'Dancing With the Stars' professional dancer Sharna Burgess, 36.

The insider added: "They still have things that come up. However, he is very happy with his own life and his relationship, so that has helped.

They are all adjusting to this situation well.

"The kids like spending time with both parents and their significant others. Everyone is doing a lot better."

Meanwhile, Megan recently revealed that her "whole life changed" after she finally watched her movie 'Jonah Hex' for the first time.

The actress had never seen the 2010 superhero Western because it had been panned by critics but when she came upon it by chance while shooting 'Rogue' in South Africa, she decided to tune in and it gave her an epiphany which made her vow to stop hiding away.

She said: "I took all my crystals, and I set up my little temple inside my room. I turned on this massive TV, and 'Jonah Hex' was on, which got panned in the press. It was supposed to be terrible.

"I had never even watched it because the other actors told me not to. I mean, I got crucified for that movie.

"But something came over me, and I said, f*** it, I'm going to be brave and watch it."

"I had this incredible breakthrough, and I saw that I had been living in a self-imposed prison for so long because I let other people tell me who I was or what I wasn't. I hid because I was hurt.

"That night, I stayed up and promised myself that I would never live one more day of my life from fear. I came home, and my whole life changed.

"I got a divorce and I started working more and doing more things. I ended up meeting Colson [MGK), and then literally everything exploded from there."