THE relationship between Dannii Minogue and Kris Smith imploded after the footballer-turned-model wanted out of "Minogue Inc" following the birth of their baby, insiders claimed.

Sources close to Smith said the 33-year-old Brit thought Minogue became "colder" and "a nightmare" to live with after son Ethan was born in July 2010.

Smith moved out of the Melbourne-based pair's Hawthorn home two weeks ago - a repeat of his evacuation last May when he moved in with mates for three weeks.

Custody and access of the child are now central to the couple's plans for living apart.

"Kris is and has been very much a hands-on dad and he wants to remain in Australia. He loves it here," the friend said.

"He loves the weather, the lifestyle, the relaxed people and if it is up to him he will want as much of Ethan as he can have."

However, Minogue is believed to be eager to continue her career on two continents, with half the year spent in Australia and the other half in the UK.

The Australia's Got Talent judge launched her fashion line Project D and stepped down from the British version of The X Factor last year.

"Kris is just an easygoing guy. He's not very complicated, not up for all the stuff that goes along with being part of the Minogue corporation. He really got jack of being part of Minogue Inc," the friend said.

With Minogue's parents Ron and Carol a permanent fixture in her entourage, sources said Myer ambassador Smith's independent nature had been a problem for some time.

His decision to quit the family home last year was said to have been made without consultation with his "in-laws", leaving Ethan's grandparents - who are used to micro-managing - "embarrassed".

Minogue and Smith simultaneously took to Twitter yesterday to confirm the end of their de facto relationship.

"It brings me great sadness to tell you that Kris & I have separated," Minogue posted.

"We still care for each other & ask for privacy at this difficult time, in particular for our son Ethan who remains our number one priority."

The pair started dating in 2008 after meeting at a nightclub on the Spanish party island of Ibiza.

Minogue plans to "retreat for a while" while Myer confirmed Smith would be at the Golden Slipper tomorrow.