10/26/2013 AT 3:30 PM ET
Talk about friendly exes.
On Saturday, they were spotted walking arm in arm in New York City as Kerr, 30, toted their 2-year-old son, Flynn.
The Victoria’s Secret model, decked out in a gray trench, a black shirt and jeans, smiled as she clasped the 36-year-old Bloom’s arm. The actor, wearing a baseball cap, flashed a small grin as they strolled along, while Little Flynn nibbled on a frozen pop.
According to eyewitnesses, Bloom arrived at Kerr’s apartment, and the exes, along with their son, then hightailed to a restaurant on Manhattan’s Upper East Side.
“They looked happy. Definitely like a family,” an observer tells PEOPLE.
This is the first sighting of the couple since news broke Friday that they’ve been separated for several months now. They were married in July 2010.
“We’re family,” Bloom told TMZ Friday. When asked about reason for the split, he replied: “Life’s a mystery.”