On Tuesday, a source who knows the couple told PEOPLE that their decision to file for divorce was not unexpected
"Under The Electric Sky (EDC 2013)" Premiere - 2014 Sundance Film Festival
Credit: Denise Truscello/Getty

Holly Madison and Pasquale Rotella‘s decision to end their nearly-five year marriage was not a shock to those who knew them.

On Tuesday, a source who knows the couple told PEOPLE that their decision to file for divorce was not unexpected.

“Holly and Pasquale had been having trouble for some time,” the source says of the former Playboy model and the Electric Daisy Carnival founder. “This wasn’t a sudden decision. They had a lot in common, but they were also very different people.”

Added the source: “Holly is an amazing mom and will do what’s best for her kids. They still care about each other and will remain in each other’s lives.”

"Under The Electric Sky (EDC 2013)" Party - 2014 Sundance Film Festival
Credit: Denise Truscello/WireImage

PEOPLE confirmed via multiple sources on Tuesday morning that Rotella and the 38-year-old reality TV star had split over the summer, with another source revealing that Madison is now based in Los Angeles and “doing okay.”

The Blast reported that Rotella, 44, filed for divorce on Aug. 31 in Las Vegas.

Rotella later confirmed the news on Instagram, sharing that he and his wife — who share daughter Rainbow Aurora, 5, and son Forest Leonardo Antonio, 2, together — have separated as a couple.

“It is with love in our hearts and a deep respect for one another that Holly and I have amicably made the decision to separate,” Rotella wrote in the caption of a sweet family photo. “First and foremost, we are forever partners and parents to two beautiful children, and are fully committed to raising them in an environment filled with love and positivity.”

He went on to speak highly about Madison, referring to her as a “talented woman” and “beautiful soul.”

“We remain the best of friends while co-parenting and continuing to support one another in our respective passions in life,” Rotella continued. “Though it was not a decision we made hastily or take lightly, Holly and I welcome this next chapter in our relationship, and have every confidence that the future will bring only the best for us and our kids. We will always be family. Thank you all for your continued love and support. ❤️”

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Madison met Rotella after she moved out of the Playboy Mansion — and split with boyfriend Hugh Hefner, who died in September 2017 at the age of 91 — in 2008, moving to Las Vegas to pursue a career as a burlesque dancer.

The pair began dating in 2011 and tied the knot in October 2013 in an extravagant Disneyland ceremony. They even rode in Cinderella’s glass pumpkin coach.

After a string of failed relationships, Madison said she was afraid she might never find “the one.”

“I wondered, ‘Is this because I spent my 20s at the Mansion?’ I worried I missed my chance because I was there the whole time,” she explained. “I got to a point where I was trying to adjust my mindset and think, ‘Okay, am I going to be happy without that picture of marriage and family?’ The hardest part was just feeling really alone.”

She added of finding romance with Rotella, “I love looking back and seeing the silver lining in the clouds. Everything happens for a reason.”