By the end of 2019, rumours that the Clarkes' marriage was on the rocks were rife and the pair formally announced their split in February 2020.
"After living apart for some time, we have made the difficult decision to separate as a couple, amicably," Michael and Kyly said in a statement.
"With the greatest of respect for each other, we've come to the mutual conclusion that this is the best course for us to take while committed to the co-parenting of our daughter."
Whilst Michael was becoming increasingly focused on having a bigger family, Kyly was at a stage when she was attempting to build her career.
“Michael has always said he wanted a big family. He wants three kids at least. He is super close to his own sister but Kyly was not as keen. He adores his daughter and would love nothing more than some more,” the source revealed.
Later, the House Rules judge shared some insights about post-divorce life.
"I mean it's weird because we basically see each other every day anyway so I don't even know it feels any different," Kyly said on the Kyle and Jackie O Show in April 2020.
"Kelsey Lee is our priority, so we're just doing everything that is in her best interest. Her happiness is paramount."
Kyly also remarked that she'd keep her married name so that she and Kelsey Lee will share the same surname.
In July, Michael shared the same sentiments with the radio duo and remarked that his friendship with his ex is "as strong as it's ever been."
“I think I’m extremely lucky to have been able to go through a separation with the mother of my child and us still be great friends,” he said.
“I actually think Kyly and my friendship now is as strong as it’s ever been. We still talk daily and I think you’ve heard Kyly say as well both of us will always prioritise our daughter and a big part of that is a friendship between mum and dad.”
Both Michael and Kyly have moved on romantically with their new respective partners.
According to a new report by the Daily Telegraph, mum-of-one Kyly has rekindled her romance with ex-boyfriend from 20 years ago - supercar driver James Courtney.
"It is early days but they are very happy," a source told the publication.
"They dated about 20 years ago after meeting through friends and family."
The paper also claimed Kyly and James were spotted "kissing passionately" in Bathurst in October during James' driving practice.
Retired cricket player Michael, meanwhile, has found love with P.E Nation founder and mum-of-one Pip Edwards. While the pair were reported to have ended their romance in February, it seems, according to the Daily Mail, that they're still an item.