Judd's spokeswoman confirmed a report in People magazine that the 44-year-old actress and her 39-year-old husband were ending their marriage.
The star of such films as Double Jeopardy and Kiss The Girls said in a statement that the pair would "always be family" and continue to cherish their relationship based on love, integrity and respect.
Last year Judd starred in the ABC TV series Missing and attended the Democratic National Convention as a Tennessee delegate.
Franchitti has won the Indianapolis 500 race three times.
The couple wed in a private ceremony in Scotland in 2001.