Jon and Kate Gosselin met for the first of two scheduled arbitration hearings, but apparently the first was so "successful and productive" that the second hearing was cancelled, according to Jon's attorney, Mark Heller.

Jon came to the meeting bearing roses, and although Kate apparently did not accept them (she left empty-handed), she was ready to mediate.

Here's what happened at the mediation hearing according to TMZ:

We've learned even Jon isn't contesting that Kate should get primary custody and a decision on who gets what in the money department will be handed down within 30 days.

Sources tell us the two issues on the battlefield are the distribution of assets and child support. In Pennsylvania, the courts award "equitable" distribution when it comes to property, but that doesn't necessarily mean 50/50.

Sources tell us neither party asked for spousal support.

We're told Jon and Kate actually agreed to the amounts certain items were worth, but they were far apart on issues relating to how the assets should be distributed.

Although Kate and her attorney declined to comment on what occurred, Jon's attorney, Mark Heller, described it this way to People:

"There were a couple of very emotional moments, " says Heller, "but in the end it all came together and concluded on a happy note."

Jon and Kate apparently were able to reach agreements on all of those issues, which is why the second day of hearings was cancelled.

According to Mark, the divorce could be finalized by the end of the year. And the final 'Jon and Kate Plus 8' airs tomorrow night. Are you ready for this drama to come to an end?

Photos by INF