Urdangarin was sentenced to five years in prison by a Palma court for fraud and even he was wife was questioned by a police judge in connection with the case. They were both stripped of their titles of the Duke and Duchess of Palma de Mallorca.
According to Spanish media, his new "friend" is a work colleague. She is also a former beauty queen. Urdangarin now works at a lawyer's office.
Princess Cristina, 56, and Urdangarin, a 54-year-old former professional handball player, have been married for 24 years and have four children.
In one of a series of scandals that rocked the Spanish royal family, Urdangarin was found guilty in 2017 of using royal connections to overcharge regional governments through public contracts to stage sports and tourism events.
Princess Cristina was acquitted in the case, while he was handed a prison sentence of five years and 10 months.
The Casa Real royal household, of which Cristina, who lives in Geneva, is no longer part, declined to comment on the separation.
As part of efforts to modernise the monarchy and distance it from the scandals, King Felipe removed his elder sisters, Elena and Cristina, from royal duties after his father Juan Carlos abdicated in 2014.
Juan Carlos, who retains the title of King Emeritus, left Spain in August 2020 to relieve the pressure on his son as allegations of corruption were being investigated by the Spanish and Swiss authorities. The Swiss investigation was shelved at the end of 2021.
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