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Sylvester Stallone Working on Divorce Settlement ... No Prenup in Place

Sylvester Stallone and Jennifer Flavin are moving towards a settlement in their ugly divorce, putting a hold on court proceedings to hammer out a deal in private ... and shockingly, we're told there was no prenup in place.

According to new legal docs, obtained by TMZ, Sly and Jennifer both requested an order of abatement -- which the court granted -- in their divorce down in Florida. This means filings have been put on hold, however, sources connected to the case say the divorce is still happening .