She's traded in her Bev Hills mansion, private plane, and oodles of red carpet appearances, for a modest two bedroom apartment and the NYC subway.
Although reports have surfaced saying Katie's been sad and out of work, she seems to be doing just fine!
"I almost walked by, and there was Katie. She looked just like Joey Potter. Really young and super chill. No one was paying any attention. It was a laid-back situation."
It's sort of weird thinking she was once Mrs. Tom Cruise!!!
The 34-year-old actress has embraced her new found low-key existence as a single mama. Another source reveals:
"She is in her prime, and truly enjoying the life she is creating for herself."
You go Katie!
Enjoy being a single lady!
[Image via Michael Carpenter/WENN.]