Michael Sheen Wasn’t Ready to Settle Down with Rachel McAdams: Source

Michael Sheen and Rachel McAdams in April 2012

Karwai Tang/Landov

updated 02/28/2013 AT 4:00 PM ET

originally published 03/01/2013 AT 7:00 AM ET

There’s no bad blood between Rachel McAdams and Michael Sheen. The exes simply “have different visions for the future,” a source tells PEOPLE about the pair, whose split was confirmed on Wednesday after two years of dating.

“Rachel wants to settle down and is dreaming of having a family. Michael always seemed content with their relationship. Since he already has a daughter [Lily, 14, with Kate Beckinsale], he feels no need to have more children. He wants to focus on his career.”

“They still have some contact and are friendly,” the source adds, but it was their differences that eventually led to the demise of their relationship.

“They tried to work things out, but at the end they just couldn’t agree,” the insider says. “It caused some frustration and they thought it was better to go separate ways.”

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