Tori Spelling and Dean McDermott have stepped out in public for the first time since news spread of McDermott's alleged cheating affair, which reportedly left his wife "devastated" and "heartbroken."

The couple was spotted in public leaving an unspecified building in Los Angeles together late last week and both former reality TV stars had smiles on their faces, Us Weekly reported.

Spelling, 40, was wearing tight light-colored jeans and a fur jacket, while McDermott, 47, was sporting dark jeans, a black bubble coat and a scruffy beard.

While the pair seemed to be in good spirits, E! News had reported last week they've been living separate lives since McDermott had allegedly cheated on Spelling last month while away on business.

A source told Us, "Tori went nuts and has been saying she may leave him."

"She's much more heartbroken than anyone realized," a Spelling friend told People. "She's flipping out and is completely devastated."

During the weekend of December 7, McDermott was in Toronto as part of a press tour to promote the new reality show Chopped Canada for which he'll serve as host. While away, McDermott allegedly had sex with a woman named Emily Goodhand, 28, who revealed the details to Us.

"He told me he and Tori had a sexless marriage. I believed him," Goodhand admitted, adding that they "absolutely" used protection when hooking up.

"He was romantic and very complimentary... I'm sorry. I f-cked up."

The Spelling friend told People that it's been pretty obvious Spelling is upset -- more than ever -- as rumors regarding marriage troubles and McDermott cheating had surfaced in the past as well.

"Remember early last year when the tabloids wrote something [about marriage issues] and she blasted them on her website? Now she's not even doing that. I don't think she even knows what she's going to do right now," the friend added.

"But no matter what, she's staying strong for her kids. She's all about her family. She worships those kids. I don't know if she's strong enough to leave him right now with everything she's going through and four young kids. She could stay with him or not. God only knows."
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Both Spelling and McDermott have yet to comment on the cheating reports since they first surfaced several weeks ago.

The former Tori & Dean stars have been married for seven years. They met on a movie set in 2005 but both individuals were married to other people at the time. After a three-week affair, they left their spouses and wed in May 2006. Because of the way the pair's relationship began, Spelling has always reportedly feared McDermott would be unfaithful to her.

The couple has four children together: Liam, 6, Stella, 5, Hattie, 2, and Finn, 15 months. McDermott also has a 15-year-old son Jack from a previous marriage.