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Lamar Odom Chose to Leave Rental Near Khloé Kardashian: They're Both 'Ready to Move On,' Says Source

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Khloé Kardashian and Lamar Odom appear to be going their separate ways.

A source tells PEOPLE that Odom, 36, has moved out of the Calabasas, California, rental home his estranged wife set up for him earlier this year. The news comes less than two months after Kardashian, 32, filed divorce papers in May for a second time.

Despite reports Kardashian allegedly kicked the former NBA star out of the house, the source says Odom was free to extend the lease if he so wished: “He has his own money. It was his choice not to,” says the insider. “Lamar was ready to move on as well.”

“They are divorcing and now that Lamar is doing better, he doesn’t feel the need to live next door to Khloé,” adds the source. “He has been staying with friends but is also looking for a new place.”

Kardashian and Odom’s relationship appears to have cooled off lately, and a source told PEOPLE last month that the two “aren’t talking.”

“It was her decision,” said the source, explaining that Kardashian had grown frustrated with Odom’s behavior in recent months, during which he was spotted drinking more than once despite being in recovery from a near-fatal overdose in October.

Added the source: “She feels like she’s done everything she can and it’s just ridiculous at this point.”

Last week, Odom responded to Kardashian’s May divorce filing, agreeing with her citation of “irreconcilable differences” for the cause of the split and requesting that the judge deny her spousal support.

Keeping Up with the Kardashians airs Sundays (9 p.m. ET) on E!