Olivia Wilde and Jason Sudeikis part ways after 7 years of engagement

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NEW YORK, NY - FEBRUARY 17: Actors Olivia Wilde and Jason Sudeikis attend "Race" New York Screening at Landmark's Sunshine Cinema on February 17, 2016 in New York City. (Photo by Jamie McCarthy/Getty Images)

Olivia Wilde and Jason Sudeikis are going their separate ways.

The Booksmart director, 36, and the Ted Lasso star, 45, have split, ending their engagement of more than seven years, PEOPLE has exclusively learned.

“The split happened at the beginning of the year,” a source close to the couple tells PEOPLE. “It’s been amicable and they’ve transitioned into a great co-parenting routine. The children are the priority and the heart of the family’s relationship.”

Wilde and Sudeikis share son Otis Alexander, 6, and daughter Daisy Josephine, 4.

The pair first started dating in November 2011 and Sudeikis proposed shortly after the holidays in 2012.

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“I met her at a finale party for SNL,” Sudeikis told Stephen Colbert on The Late Show in 2017. “We hit it off that night.”

“I actually came off looking a little cooler than I really am because I had heard through the grapevine, through mutual friends who weren’t exactly her best girlfriends, who would report back, ‘Oh you know, I think she’s dating someone,’ ” he explained. “So I didn’t make any moves. I was just very, very busy with other things. And next thing you know, I stopped being busy, she stopped dating someone, and then it was off to the races.”

“We sort of reintroduced ourselves,” he added. “The universe had more in store for us in the fall.”

'Booksmart' film premiere, SXSW, Austin, USA - 10 Mar 2019

In 2013, Wilde told Allure that she thought the Saturday Night Live alum “was so charming” when they first met, but said the actor “didn’t even get my number.”

“Over the next six months we kept running into each other,” she recalled. “[One night], my best guy friend walked up to him and said, ‘This is Olivia’s number. Use it.’ That was the beginning.”

Wilde told PEOPLE last year that having Sudeikis be a part of Booksmart, her directorial debut, was “great.”

“He’s one of the best improvisers in the world so I knew I could cast him,” she said. “He’s like spinning a top and just letting it roll. It’s really amazing to see him do his thing.”