Attorneys for both sides also refused to divulge details of the hearing.
Los Angeles Superior Court Judge Hank Goldberg sealed the hearing at the request of Mueller's attorney, saying it was "in the best interest of the children" because of "questions of abuse and other inflammatory and emotional issues."
Sheen arrived in court wearing a black suit, glasses and an orange tie. As the public filed out of the courtroom, Sheen gave a fist bump to a reporter in the audience. One of his girlfriends, whom he describes as goddesses, accompanied him to court and sat on a bench outside the courtroom.
The actor and his estranged wife have sparred in recent months, with Mueller accusing Sheen of threatening her with a pen knife.
The couple reached an agreement and Mueller dropped her request for a restraining order. Sheen's attorney, Mark Gross, said in court it was unfair that Mueller's attorneys hadn't sought to seal the restraining order, which detailed numerous alleged threats Sheen had made.
Gross agreed the hearing should be closed and said Mueller's request for privacy was, "a dollar short and a day late." Mueller's attorney accused him of grandstanding, saying he didn't object to closing the proceedings in a closed chambers meeting with Goldberg.
Sheen is in the midst of a multicity tour titled "My Violent Torpedo of Truth - Defeat is Not an Option" and still planned to perform Tuesday night in the nation's capital.
In Santa Monica, Sheen's attorneys argued Tuesday that his $100 million lawsuit over his firing from "Men" should be heard in the public courts system rather than through private arbitration as his former employer, Warner Bros. Television, wants.
Sheen's attorneys contend an arbitration clause in his contract is unenforceable and the case should be decided by a jury if it proceeds that far.
The hearing recessed for lunch and will reconvene Tuesday afternoon, although it is unclear whether the judge will immediately rule.
Warner Bros. denies Sheen's claims and in court filings stated that the actor's contract calls for disputes to be decided by binding arbitration.
Sheen filed his lawsuit March 10, days after he was fired from television's top-rated comedy. He is also suing "Men" Executive Producer Chuck Lorre, who also wants the case handled by arbitration. Warner fired Sheen after a series of bizarre behavior during interviews and after he vehemently criticized Lorre.
Sheen has said during his stage show that he would return to the show, which reportedly paid him $1.8 million an episode, but Warner has denied there have been discussions for Sheen's re-hiring.
