Ryan Reynolds Spotted at World Cup Match as Wife Blake Lively Loses Court Battle

Ryan Reynolds is looking to score a distraction ... stepping out for a World Cup match just as his wife, Blake Lively, absorbed a legal setback in her battle with Justin Baldoni.

The actor was spotted in Toronto for the Canada vs. Bosnia and Herzegovina game Friday afternoon, appearing relaxed and in good spirits as he took in the action from the stands.

The outing comes right after we broke the story ... Blake struck out in her bid to collect damages from Justin and Wayfarer -- though she did score one win, with the court ruling they must cover her attorney's fees.

How much that'll cost Justin and Wayfarer remains unclear, but one thing is settled -- they're not on the hook for any additional damages payments to Blake.

The money dispute was one of the last loose ends in the former "It Ends With Us" costars' legal war, which stemmed from allegations of sexual harassment and retaliation tied to the film's production.