On Friday, PEOPLE confirmed that Flavin, 54, and Stallone, 76, reconciled one month after she filed for divorce on Aug. 19 after 25 years of marriage. In her filing at the time, Flavin alleged that the actor "engaged in the intentional dissipation, depletion and/or waste of marital assets which has had an adverse economic impact on the marital estate," which he denied.
A source tells PEOPLE about their decision, "They've decided to let it ride again. They just decided to reverse course and try again."
Additionally, a rep for Stallone told Page Six on Friday that the couple, who shares three adult daughters, "decided to meet back up at home, where they talked and were able to work out their differences." His rep added that they are "both extremely happy."
Antony Jones/Getty Sylvester Stallone and Jennifer Flavin
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Last month, sources told PEOPLE about some of the differences the couple have encountered in marriage.
They "are very different people, age-wise and in temperament," said a Hollywood source who has spent time with the couple. "What was once exciting and challenging is now routine and irritating."
A Flavin source added, "He tends to do things on a whim without asking her before," says the source. Stallone previously admitted to TMZ he and Flavin had butted heads over his new pet Rottweiler but denied the dog was the root cause of their breakup.
Stefanie Keenan/Getty Sylvester Stallone and Jennifer Flavin
The Hollywood source said "disagreements on little things add up after so many years together," and another source had told PEOPLE, "It really wasn't just one issue that made her file for divorce. They have had lots of issues for years and she just had enough."
Their reconciliation news comes days after a Palm Beach County, Florida, court filing said both Flavin and Stallone agreed it is "in the best interests of each of them individually, and more importantly collectively as a family, to resolve all issues attendant to the dissolution of their marriage in a dignified, amicable and private manner out-of-court."
After her divorce filing last month, Flavin told PEOPLE, "I'm sad to announce that after 25 years of marriage I have filed for divorce from my husband Sylvester Stallone. While we will no longer be married, I will always cherish the more than 30-year relationship that we shared, and I know we are both committed to our beautiful daughters. I ask for privacy for our family as we amicably move forward."
Stallone, meanwhile, also said in a statement at the time, "I love my family. We are amicably and privately addressing these personal issues."