The couple confirmed they were going their separate ways via a statement to People Magazine over the weekend.
"Sadly our family is separating legally, although we do not feel this takes away from us being a family. Divorce might make one feel like a failure, but eventually you start to find grace in the idea that life goes on," their rep explained.
"Our children are our universe, and we look forward to living the rest of our lives with them as the first priority," it concluded.
The sad news was first reported by Page Six, with sources telling the publication the pair have been "having some difficulties, but they remain close for the sake of their kids."
Will and Drew tied the knot in a stunning ceremony in Montecito, California back in 2012. They share two daughters, Olive, three, and Frankie, who turns two later this month.
Another insider added that the 41-year-old actress has always struggled to reconcile her tumultuous past with her more settled adulthood.
"Drew had a very rebellious and wild childhood, with no family around her, and while she is a very different person now, and a great mother, some of that can stay with you," a source explained to Page Six.
Meanwhile, People reports the couple had been struggling to reach an agreement on where to live, with the Charlie's Angel star drawn to LA and Will keen to raise his daughters in New York.
Pals say Will, 38, is "devastated" by the break-up.
Speaking of her husband last October, the Wildflower author told InStyle they were "polar opposites" but it worked.
"It was never really love at first sight. Will struck a lot of my pragmatic sides. He was someone who was always reachable on the phone, someone who was a classy human being, someone who has this incredible blueprint of a family that I don't have," she reflected.
As the news broke, Drew took to Instagram to share a snap of her beautiful new tattoo - her daughter's names inked on her wrist.
"Getting a great little lifetime note on my arm," she penned.
On Saturday it was business as usual for the star, who put on a brave face as she attended the Pebble Beach Food & Wine bash on behalf of Barrymore Wine in California.
Attendees commented that the actress was the consummate professional and in an upbeat mood despite the circumstances.
This marks Drew's third marriage. At 19, she married bartender Jeremy Thomas but they divorced just two months later.
In 2001 she wed comedian Tom Green before breaking up five months later.