Tom Cruise and fiancée Katie Holmes have signed a $40 million pre-nuptial agreement. The Hollywood couple - who welcomed their baby daughter, Suri, into the world last month - spent weeks thrashing out the details of the financial agreement, which determines who gets which assets if they ever split.

An $15 million trust has been set up for Katie and her baby regardless of whether the couple wed. But if they do marry and later divorce, the Batman Begins beauty will receive an extra $25 million from Cruise.

The pair have reportedly decided to get married this July now their pre-nup has been finalized, according to a report in the Daily Mail newspaper. Katie's parents - who were thought to be worried about the haste of their daughter's romance and the fact she embraced Cruise's Scientology beliefs - are said to be happier about the marriage now she will be taken care of financially.

A source said: "Katie's family have always been very sceptical about their romance. They were shocked that Katie got pregnant so quickly and didn't like the way she had turned her back on Catholicism for Scientology.

"But now this deal has been sorted out they are at least relieved that Katie and her baby will be financially secure for life, even if she doesn't marry Tom."