The 67-year-old actor and the `Cheers` actress - who met in 1970 and tied the knot in 1982 - are splitting after 30 years of marriage, a representative for the couple has confirmed to gossip website TMZ.com.
Danny and Rhea, 64, met when she went to see off-Broadway play, `The Shrinking Bride`, which the `Twins` actor was appearing in.
The couple - who have three children Lucy, Grace and Jacob, together - founded production company Jersey Films, which is behind 1994 crime movie `Pulp Fiction` as well as `Garden State` and `Freedom Writers`.
In 1996 fantasy film `Matilda` Danny starred as Harry Wormwood with Rhea portraying his on-screen wife Zinnia Wormwood.
Danny and Rhea are both known for their short statures and the `Batman Returns` star previously admitted his five-foot height may have felt like a disadvantage when he was a teenager, but it made him learn other skills to impress ladies.
He explained: "I learned how to dance real good. I had to, because [girls didn`t want to] slow dance [with me]."