"They both worked hard to figure out their marriage," a source close to Brian Austin Green tells PEOPLE of the actor and Megan Fox

By Lindsay Kimble
July 01, 2016 12:40 PM

Megan Fox and Brian Austin Green are ready to be a happy family of five.

The actress and Green, who split last summer, are calling off their divorce, a source close to the 42-year-old tells PEOPLE.

“Brian and Megan are living together in Malibu with their boys,” the insider says. “They have been getting along and seem very happy. They are just waiting for the baby to arrive.”

Fox, 30, is pregnant with the couple’s third child – they are already parents to sons Noah Shannon, 3, and Bodhi Ransom, 2.

The pair have remained close in the months since she filed for divorce after five years of marriage last August – especially following Fox’s surprise pregnancy revelation.

In April, they even jetted off to Hawaii, together, for a family vacation at the Four Seasons Hualalai.

“During their separation, Brian always hoped Megan would change her mind about the divorce and he is very happy that she did,” the source says. “They both worked hard to figure out their marriage and things seem great.”

Of the Hawaii trip, another source previously told PEOPLE that Fox and Green were “reconsidering the divorce” because “They don’t want their kids to grow up in a broken home.”

Fox’s Teenage Mutant Ninja Turtles: Out of the Shadows costars will be excited about the reconciliation news: at the film’s May premiere, actress Brittany Ishibashi told PEOPLE she hoped the pair would get back together.

“[Green is] such a sweet guy,” Ishibashi said. “They are both such sweet people – super chill. They’re very spiritual people, very kind and generous. And she’s an amazing mother. She was always talking about her kids and FaceTiming with her kids. And I think Brian’s a great dad. They’re such cool people.”

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