
The actress, 38, who shares four children with husband Ryan Reynolds, 49, is prioritizing time with her loved ones. "She's staying focused on the present as she heads into the holiday, making family her top priority," the source says.
While Lively continues to manage work commitments, including promoting her haircare line, her mindset is centered on motherhood and creating a memorable Christmas for her kids. "Anything beyond this is something she plans to address when the time comes," the insider adds.
Her approach is simple: "Next year is next year. Right now, it's all about the kids and family time," the source explains.
Lively's legal dispute with her It Ends With Us co-star Baldoni, 41, has reached its one-year mark. In December 2024, she filed a lawsuit against Baldoni and others alleging sexual harassment and retaliation, claims he denies. She is seeking more than $160 million in damages. The trial is scheduled for May 2026 in New York City.
Her attorneys, Esra Hudson and Mike Gottlieb, reflected on the past year in a statement, saying Lively "has persevered against a billionaire-financed effort to bury her, her family, and businesses through retaliatory lawsuits and a relentless media and digital campaign."
They emphasized that Lively remains committed to exposing systems that silence and discredit women who speak out. "She is more determined than ever to shine a light on these forces," the statement reads.
Baldoni's attorney, Bryan Freedman, also issued a statement marking the anniversary of the lawsuit. "My clients are deeply grateful for the support and kind words they've received over the past year," he said. "We trust that the truth will ultimately prevail, and the care shown has been a meaningful source of strength during an incredibly challenging time."
Freedman added that his clients hope attention will also be given to broader issues affecting the world, especially during the holiday season. "We hope the focus remains on supporting those who need it most and that we continue to look out for one another," he said.

