After overcoming his recent bout of throat cancer, Douglas, 66, and Catherine, 41, attended yesterday's Palm Springs International Film Festival.
She told Etonline.com: 'To see him healthy is the best gift, and also in a year of adversity Michael has done two tremendous pieces of work.'
Zeta-Jones added that their children Dylan, 10, and Carys, seven, are doing 'fine'.
Michael said: 'I think they're all happy that it's over with.'
The Wall Street: Money Never Sleeps star was honoured with the Icon Award at the 22nd Annual Palm Springs International Film Festival.