Prince Andrew's 'tense' relationship with ex-wife

Britain's Prince Andrew's relationship with ex-wife Sarah Ferguson is said to be "tense".

The former couple are said to have been arguing since it was revealed the duke's friend, disgraced businessman Jeffrey Epstein - who has previously been in prison for soliciting an underage girl for prostitution - paid off Sarah's debts.

A source close to the pair said: "There has been a lot of tension. They have had arguments which have taken their toll on the Princesses, particularly Beatrice who is in the firing line while Eugenie is at university in Newcastle."

Sarah - who has two daughters, Princesses Beatrice and Eugenie with Andrew - was in negotiations with Jeffrey, a former friend of the duke, for months last year before he presented her with a £58,000 gift to pay off her debts in last December.

Prince Andrew and Sarah will put their differences behind them, however, to celebrate Eugenie's birthday today (28.03.11).

Meanwhile, Andrew has faced further embarrassment recently after it has been alleged Princess Beatrice received a diamond necklace for her 21st birthday two years ago from Libyan businessman, Tarek Kaituni.

Tarek has convictions for possession of drugs and attempting to smuggle a sub-machine gun into France and has served time in prison time in1998 for the former crime, and is also said to have links to the country's controversial leader Colonel Gadaffi.