Brady was absent when Tyler, 64, vacationed in Hawaii with his extended family over New Year's, reported the New York Daily News.
Her presence was important because he proposed to his girlfriend of five years in the same spot and even had a commitment ceremony there in 2011.
"Steven was just not that nice to her in the end. His family and entourage never really accepted her and she can do better. They're still friendly but they're going their own ways. The engagement is off," a source said.