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Brad Pitt is balancing work with fatherhood.

The 54-year-old actor was snapped on the Los Angeles set of his new film with Leonardo DiCaprio, "Once Upon a Time in Hollywood," on Monday, rocking a denim-on-denim outfit. A source tells ET that Pitt has been busy filming the highly anticipated Quentin Tarantino crime drama set in 1969, but also spending time with his kids.

According to the source, Pitt's kids with estranged wife Angelina Jolie have been spending time with the actor at his Los Feliz, California, home, and that there's "a lot of laughter and skating" around the house.

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Last month, Pitt and 43-year-old Jolie struck a new custody agreement when it comes to their six children. According to court documents obtained by ET, Jolie was ordered by a judge to help repair her children's relationship with Pitt. A judge determined that the kids "not having a relationship with their father is harmful to them," and the actor will now have more time with his minor children -- 14-year-old Pax, 13-year-old Zahara, 12-year-old Shiloh and 9-year-old twins Knox and Vivienne -- over the summer, while 16-year-old Maddox, "because of his age and maturity," can determine how much time he wants to spend with his father.

In keeping with the new custody agreement, Pitt has been with the children since July 21 and will have them through July 29, before he is responsible for getting the kids back to London to be with Jolie. Pitt must arrange for visits with doctors and a therapist during his time with the kids, while Jolie is only allowed to call the kids once per day at a time agreed in advance by both parents.

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Late last month, a source told ET that Pitt is looking to improve his co-parenting relationship with Jolie, and is choosing fatherhood over dating.

"Brad was taking time to date, when he had the time. He also enjoyed quietly dating," the source said. "But now all he wants to do is focus on family. He has taken a step away from dating because of the importance of his children and also to help mend fences with Angelina."

"[He and Angelina] still don't get along at all, and in fact, they can barely be in the same room," the source added. "Brad doesn't want to rock the boat [by dating]. He wants to try to co-parent and the last thing he needs right now is to start another war because things seem smoother than they've ever been."

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