Heather MillsPaul McCartney and Heather Mills are reportedly making progress towards a divorce settlement during their week-long High Court hearing - but Heather is refusing to agree to a gagging order.

Both parties left the Royal Courts of Justice in London last night looking pleased with the day’s proceedings, which are said to have covered distribution of their shared assets including artwork, gifts of jewellery & clothing, and electronic equipment.

The hearing is said to have included both tears and giggles from both parties but is proceeding well, with the exception of the gagging issue.

A source told the Mirror: “For Heather, it isn’t about writing a book or selling her story. It’s about having the right to defend herself if people say she’s a bad wife or mum.”

“Paul doesn’t want her to say anything about their time together. He doesn’t want her talking about their marriage full-stop.”

“Neither side is prepared to concede at the moment. So unless one has a sudden change of heart, it may be for the judge to decide.”

Another snagging point may be over their daughter, Beatrice. Paul is said to be insisting on a clause preventing Heather from permanently moving abroad with the four year old - but Heather’s dad has said the former model is keen to flee the UK.

He told the Sun: “She won’t stay in this country. She knows everybody hates her here and she does not care.”

“I think she’s very low at the moment and would leap at the chance to get away from it all and take her daughter Bea with her.”

“I think she’ll go abroad and then just slowly fade away into obscurity.”

The hearing is set to run through until Friday.