UPDATE: Kelly released a statement, saying, "Kelly is gratified by the outpouring of support she's received and is devastated that her American citizen children were ordered to live overseas to accomodate their father because he's banned from entering the U.S."
Kelly Rutherford just suffered a major blow in her ongoing custody battle with ex-husband Daniel Giersch.
After going head-to-head over the custody of their children since their split in 2009, the couple received a ruling in their case Tuesday, with a judge determining that it was in the best interest of the duo's two children to relocate with Giersch to Monaco, E! News has confirmed.
Giersch currently lives in Monaco and has a revoked visa, preventing him from returning to the United States. Meanwhile, Rutherford has been seeking sole custody to keep Hermes, 5, and Helena, 3, with her in the United States.
"The court must commend the parties for the exceptional parenting they have both demonstrated during the two years and nine months that this case has been pending before this judicial officer," Judge Beaudet said in the court documents. "Each in their own way has helped to shape and enrich the two wonderful children they share together. They are the luckiest of parents because they both have had more financial security and more time available to spend with their children than most people will ever have. And with that time and wealth, they have afforded their children exceptional educational and cultural experiences."
"Because these children have two very excellent parents, the relocation decision this court makes today, is without doubt one of the hardest decisions this Court has had to make in its nearly three years in family law."
Judge Beaudet granted Giersch's request to relocate the children to Monaco until the end of the school year and until his visa is restored. But, if Giersch doesn't seek his U.S. residency "in good faith" the court will find it in the best interest of the children for them to relocate to New York with Rutherford.
"The best interest of the children will be served because the relocation plan for France is the only plan that offers the possibility of nearly equal parenting time while Daniel cannot return to the US," the judge stated in the document. "Once Daniel can return to the US, the parties have agreed to equal parenting time."
Although the Gossip Girl star herself has decided not to comment on the ruling, her spokesperson told People, "Kelly is devastated by the court ruling and will never stop fighting for her children. An appeal is already in the process."
Giersch has also not commented on the court proceedings. But, his lawyer, Fahi Takesh Hallin of Harris Ginsberg LLP told E! News Giersch is "focused on co-parenting the children, and continuing to promote any and all contact of the children with Kelly."
This development is just the latest in the bitter custody battle for the couple, who have been in and out of court since they split.
Their divorce was finalized in 2010.