The `Two and a Half Men` actor signed a written agreement two weeks ago to give ex-wife Denise Richards full custody of six-year-old Sam and four-year-old Lola, to replace the shared arrangement they currently have.
Gossip website TMZ reports the actress wanted full legal custody due to her former spouse`s current marital problems with wife Brooke Mueller, his struggle to stay sober and the criminal charges he is faced with following his arrest for allegedly attacking Brooke last Christmas Day (25.12.09).
Although Charlie willingly signed the documents, they have not been filed with the court yet.
The agreement means Denise, 39, can now make medical, schooling and other important decisions regarding the children`s welfare - including taking them out of the country - without Charlie`s approval.
Under their 2006 divorce agreement, Denise - who receives $50,000 a month in child support - has primary physical custody and her 44-year-old ex-partner has visitation rights.
Charlie - who has 13-month-old twins Max and Bob with Brooke - is currently living away from his family but the couple recently stated they have no plans to divorce and want to save their marriage for the sake of Max and Bob.
In March, Charlie, 44, pleaded not guilty to assaulting Brooke as he faces three charges - felony menacing, misdemeanour third degree assault and misdemeanour criminal mischief - stemming from her allegations he threatened to kill her with a knife. A trial date has been set for July 21.
Both Charlie and Brooke have been in rehab since the allegations receiving treatment for their respective addictions.