Olivia Wilde and Jason Sudeikis 'Don't Speak' Directly but Want 'What's Best for the Kids': Source

Olivia Wilde and Jason Sudeikis are continuing to put their children first.

Despite the exes' contentious custody battle surrounding their daughter Daisy, 5, and son Otis, 8, a source tells PEOPLE in this week's issue that Wilde, 38, "wants to focus on what's best for the kids."

"She and Jason don't speak to each other, so they have help communicating about the custody schedule," the insider adds.

And though she is "upset about the custody drama," the Don't Worry Darling director still "wants the kids to see" Sudeikis, 46, "as much as possible," adds the source.

"She hopes they can figure out the best living situation for everyone," the insider says of Wilde.

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Wilde and Sudeikis have been embroiled in a legal battle pertaining to where they will parent their children, among London, Los Angeles and New York City.

According to court documents obtained by PEOPLE on Aug. 10, a judge granted Wilde's motion to dismiss a custody petition filed by Sudeikis in October 2021. As a result, the case will remain in California.

In his petition, the Ted Lasso actor reportedly said he hoped for the duo to parent their kids from New York City, where the family previously lived and where Otis and Daisy were both born, according to court records obtained by the Daily Mail.

"Both Judge Powell and this Referee agreed that New York was not the home state of the subject children; but rather California was the children's home state," the documents stated.

"This court finds that New York does not have jurisdiction to hear the custody petitions as New York is not the home state of the subject children," they added.

Wilde was previously served custody papers during a presentation she was making onstage during CinemaCon in Las Vegas in April.

In recent court documents obtained by the Daily Mail, the actress and director reportedly accused Sudeikis of "embarrass(ing) me professionally" when she was served the papers onstage.

"Since Jason has made it clear that we will not be able to work this out for our children's sake outside of the court system, I filed a petition for custody in Los Angeles," Wilde said, in part.

Sudeikis reiterated in his own filing, reported DM, that he did not intend for Wilde to receive the papers onstage at CinemaCon, but instead requested that they be served at Heathrow Airport — and that plans to serve them at the hotel she was staying at for CinemaCon in Las Vegas went awry.

"I understand that the process server had only done her job; however, I deeply regret what happened," said the actor. "Olivia's talk was an important event for Olivia, both professionally and personally, and I am very, very sorry that the incident marred her special moment."

For more about Olivia Wilde and Jason Sudeikis, pick up the latest issue of PEOPLE, on newsstands Friday.