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Gossip Girl's Kelly Rutherford is Court Ordered to Co-Parent Kids in Monaco with Ex Daniel Giersch

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Aug. 29 2012, Published 4:30 a.m. ET

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Kelly Rutherford's bitter, three-year custody battle for her two kids just came to an end, and it's being reported that the Gossip Girl actress isn't happy about the outcome.

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Her ex-husband, Daniel Giersch, lives in Monaco and is banned from returning to the U.S. because his visa was annulled after Kelly accused him of being involved in illegal matters.

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"Kelly stated on the record that Daniel was dealing drugs and weapons in South America, which under the Victory Act is considered terrorism," a source tells People. "Just the accusation is enough to revoke his visa."

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The 43-year-old has been fighting for sole custody so she can keep her young children in the country with her. However, on Aug. 29, a judge ruled that her schedule is flexible enough to travel to Monaco to visit her kids, who have lived there with Daniel since May 20.

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"To protect the children and also Kelly, I have decided to continue not to comment," Daniel tells People. His lawyer, Fahi Takesh Hallin, meanwhile says his client is "focused on co-parenting the children, and continuing to promote any and all contact of the children with Kelly."

No word on when the kids will return to the States, but for now they're having fun spending time abroad.

"They play tennis at the Monte Carlo Country Club, have friends, snorkel and play at the beach," a source said. "They just enjoy the surroundings with their grandma, grandpa and father's undivided attention."

The couple were married in 2006 then split in 2008. She filed for divorce while she was pregnant with her second child.

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