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The Times newspaper claims the former Beatle has offered $40 million to Mills, who retorted she'll accept no less than $100 million of his estimated $1.65 billion fortune.
It now looks likely the pair will be forced to battle out their disagreements in court, with an unidentified lawyer telling the newspaper, "It could well go to trial because they are both quite stubborn."
The pair announced the split in May last year. They have a 3-year-old daughter, Beatrice, together.
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