Deal in sight as Paul and Heather give peace a chance

A change in mood in court 34 of the Royal Courts of Justice came yesterday as the couple had the chance to talk in heartfelt terms about how they met, how they were attracted to each other and their love for their daughter, Beatrice.

There were even rumours that the pair were in giggles during part of the evidence, but there were also times when tears were shed.

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A source said the divorce looked likely to be settled this week.

Yesterday, the couple also had the opportunity to discuss their respective assets, which would have included their properties as well as clothes, artwork, jewellery and the computer technology.

As the Daily Mail revealed last week, the pair are edging steadily towards a record settlement deal which could see Miss Mills walk away with £55million made up of a lump sum of £20million and annual payments of £2.5million for the next 14 years until four-year-old Beatrice turns 18.

The Mail understands that as part of the agreement Miss Mills could forever be "gagged" from talking about the breakdown of the marriage.

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The record pay-out is said to be based on Miss Mills's assertion that she has become a hate figure in Britain since the split and as such will be unemployable and without an income.

Miss Mills, it is planned, will be Beatrice's main carer but Sir Paul will have equal visitation rights - and his property portfolio will remain his in the agreement.

Sir Paul is understood to have agreed to pay for round-the clock security for Beatrice and her mother after Miss Mills recently revealed that she had been on the receiving end of "death threats" and is pursued relentlessly by paparazzi photographers.

The ex-Beatle is also thought to have agreed to pay Miss Mills's outstanding legal bill of some £2million from her former lawyers Mishcon De Reya.

Outwardly yesterday the pair looked to have turned a significant corner in the divorce.

Miss Mills emerged from court with a broad grin across her face. The former model looked relaxed and happy throughout the day compared to Monday when she refused to speak to the press and seemed anxious and at times upset.

Although she was unable to comment on the proceedings she did smile at reporters and whisper: "Can't speak, can't speak."

But when her legal adviser David Rosen was asked why her mood had lifted, he said: "She's happy."

It was the first outward sign that the warring couple are getting closer to a settlement and that things were going Miss Mills's way.

Sir Paul said "no comment" as he left the building at the end of the five-hour session. He too looked more relaxed than he had the previous day.

Throughout the day, tensions between the couple had appeared to be lifting.

Sir Paul, 65, had arrived looking cheery in comparison with his black mood the previous day.

He even shook the hand of Miss Mills's personal trainer Ben Amigoni - the man he once suspected was having an affair with his wife.

That was during the height of the animosity between the warring couple following the breakdown of their four-year marriage in May 2006.

Mr Amigoni and Miss Mills, 40, - who met five years ago at a London gym - have always denied having anything but a professional relationship.

Yesterday the two men swapped pleasantries for several minutes outside the courtroom where the five-day hearing in front of Mr Justice Bennett is being held behind closed doors.

Sir Paul, dressed in a dark suit and blue tie, approached the fitness expert and greeted him with a warm handshake.

Even Sir Paul's £500-a-day solicitor Fiona Shackleton broke her icy demeanour and was seen smiling and laughing with a female colleague-The hearing - due to last until Friday - will resume today.

Away from the court, Miss Mills's father claimed that she will leave the country with Sir Paul millions as soon as the divorce is settled.

Mark Mills said his daughter would set up home in either France or America because she has become such a hate figure in Britain.

Mr Mills, 66, from Washington, Tyne and Wear, who has at times had a strained relationship with his daughter, added that he thought she deserved £80million - a tenth of Sir Paul's reported worth - which would be enough for her to relocate, look after Beatrice for life and also donate some to charity.