Los Angeles Superior Court Judge Teresa Beaudet ruled Wednesday Rutherford's ex-husband, German businessman Daniel Giersch will have residential custody of Hermes, 5, and Helena, 3, the Los Angeles Times reported.
The judge ruled in favor of Giersch because his business visa was revoked in January and he would be unable to return to the United States to visit the children.
Rutherford was "devastated that her American citizen children were ordered to live overseas to accommodate their father because he's banned from entering the United States," she said Wednesday in a statement to E! News.
Beaudet Friday ruled against the appeal by Rutherford, who said she wanted the children to fly to New York City where she is filing "Gossip Girl" and had enrolled them in school.
"It would be a total disservice to miss their first day of school together [in France]. We already see the serious negative impact this [custody case] has had on Hermes in the past," Beaudet said.
The judge ruled Rutherford and Giersch will have joint legal and physical custody of the children.
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