Michael Clarke’s divorce from his wife Kyly has reportedly “done wonders” for their relationship.

After the pair announced in a joint statement that their seven-year marriage was ending, the pair have agreed on a financial settlement and on arrangements to co-parent their four-year-old daughter, Kelsey Lee.

The Australian revealed new details about the settlement as well as how the separation has affected the couple.

“Ever since Michael moved out of the couple’s Sydney harbourside home in Vaucluse in September, relations between the pair have improved to the point that they are at their best in years,” said Nick Tabakoff from Media Diary.

Negotiation of the settlement was a “lightning affair” and that the separation has “actually made things better for the Clarkes”.

Clarke hinted that he had moved out of their family home when he posted a photo on Instagram at his Bondi home that he owned with Kyly, which the family have since sold.

“After living apart for some time, we have made the difficult decision to separate as a couple, amicably,” they said in a joint statement.

“With the greatest of respect for each other, we've come to the mutual conclusion that this is the best course for us to take while committed to the co-parenting of our daughter.”

“We’d like to acknowledge the wonderful support we’ve had from family and friends, and at this time request privacy so that we can manage this next stage of our lives,” the statement read.