"It has become so bad that they cannot be in a room together for more than a few minutes without having a shouting match," a source close to the pair tells London's Daily Mail.
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The paper reports the final straw was Madonna's Friday night ultimatum that the family move from London to New York City. Ritchie, 40, refused.
"Guy Ritchie is responsible for wanting this divorce now," a source told Usmagazine.com. "He didn't want to wait to break the news, it had gone on along enough. This marriage was over a long time ago."
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Another insider told Us: "All her friends and family have known all along. They had to keep it under wraps and really tried to work things out. They tried for years, actually."
So what's at stake in the split?
Madonna is worth about $500 million, according to British reports. Legal experts tell the Mail that Ritchie could fight for up to $150 million - making it the largest divorce settlement in Britain's history.
"He won't take a penny," Ritchie's pal told the Daily Mail. Friends of the couple say they'll have a "peaceful divorce."
The paper reports Madonna has already offered Ritchie their $24 million country estate, Ashcombe House.
Meanwhile, the show must go on for Madonna.
The Material Girl performed in Boston Wednesday night - and never mentioned Ritchie by name.
Before performing "Miles Away" - a tune she's said was inspired by her ex - she announced to the audience, "This song is for the emotionally retarded. Maybe you know some people who fall into that category. I know I do."
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