Sir Paul McCartney and Heather Mills reached a stalemate in their divorce proceedings over her demands for two more houses.
The Beatles legend - who failed to hammer out a settlement with his estranged wife at London's Royal Court of Justice last week - is refusing to give Heather the pair's $4 million former family home in Hove, East Sussex, and his $12 million Los Angeles property.
A source said: "It has literally come down to bricks and mortar."
"She has asked for two of Sir Paul's estates. She wants two of the properties for herself, even though she already owns a place in Sussex. Paul has said no. They are back to square one."
As well as having a home in Sussex, the 39-year-old charity campaigner also has another home where she lives with the pair's three-year-old daughter Beatrice.
Talks between Heather and Paul - who split in May 2006 following a four-year marriage - are also said to have broken down over the former model's refusal to accept the 65-year-old singer's $100 million offer in return for her silence.
Heather was reportedly willing to sacrifice $28 million from her payout so she could talk about their relationship on chat shows and write a revealing autobiography.
The final divorce settlement is likely to be one of the biggest in British history. Paul is said to be eager to reach an agreement as quickly as possible in private without resorting to taking the case to open court.
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