Hilary Duff and hubby Mike Comrie were seen together at Coachella on Friday, looking happier than ever.

The couple announced their separation back in January, after three years of being married. However, they appeared to look happy and relaxed together at the music festival in Indio, Calif.

A source told People that although they were seen having a good time together, they still remain separated.

“They are still separated but very good friends," the source said. "They are at Coachella this weekend, which is sure to fan the flames, but they aren’t a couple. It’s just not true – they remain separated.”

The former Disney Channel star and hockey player have a two-year-old son named Luca Cruz. At the time of their split, they said they planned to remain friends.

A month after their split, the pair took a trip to the Bahamas with their son, where they planned to discuss splitting assets and custody arrangements. However, an insider told Radar Online that Comrie begged his wife for a second chance.

“Hilary and Mike hooked up when they were in the Bahamas,” the source said. “They’ve been meeting for hookups ever since, and Hilary’s softened and the two are moving forward to see if they can work it out.”