Tom Cruise to file for divorce in California

Holmes filed for divorce in New York, and is seeking sole legal custody and primary physical custody of their daughter.

Cruise will file a response in New York, asking that the divorce proceedings be halted in the Big Apple because California is the proper venue for the matter to proceed, reported Radar online.

"Team Cruise is going to assert that Holmes doesn't meet the residency requirements to file in New York and that both live full time in California, specifically Los Angeles," a source said.

"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 to be a very contentious custody battle," the source added.

Cruise does appear to have the the law on his side about where the divorce proceedings will take place.

The New York law states, "The marriage ceremony should have been 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."

Cruise's lawyers will state in their response to Holmes' 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 source said.

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