One month after calling off their divorce, Rory McIlroy and his wife, Erica Stoll, were seen vacationing in Portugal with their 3-year-old daughter, Poppy, in late July.

“They had some problems that needed resolving,” says a source. “It took a lot of patience and understanding, but they’re in a much better place now. Spending time together as a family has been beneficial, too.”

The golf great, 35, made headlines in May when he filed to end his seven-year marriage with Erica, 36. “They got off track but realized that divorce wasn’t the answer,” says the source. “They’re working hard at their relationship and look at this as the start of a new chapter. Neither Rory nor Erica want to let things get that bad again.”