Miley CyrusandKaitlynn Carterare spending their Labor Day weekend arm-in-arm.

The “Slide Away” singer, 26, and her rumored girlfriend were spotted on a lunch date in Los Angeles on Sunday with Cyrus’s momTish.

In photographs of their outing, Cyrus wraps her arm around Carter’s shoulder as both women, wearing matching white t-shirts, smile.

“They live together and are very happy,” a Cyrus source tells PEOPLE. “Miley is doing great. She is moving on. She seems to have no regrets. She loves being with Kaitlynn.”

BACKGRID

Miley Cyrus and Kaitlynn Carter

Things between the two have beenheating up since mid-August, when news first broke that Cyrus had called it quits with husbandLiam Hemsworth.

Shortly after, she and Carter, who recently split from husbandBrody Jenner, werespotted kissing on an Italian getaway.

Kaitlynn Carter/Instagram

Miley Cyrus and Kaitlynn Carter

DIGGZY/SplashNews.com

Miley Cyrus,Kaitlynn Carter

Later, the two werephotographed holding handsas they walked into the Up and Down nightclub in New York City after the show.

“Miley is very close with Kaitlynn. It’s romantic, but also a friendship,” an insider previously told PEOPLE. “They are both going through similar stuff right now and are bonding over it.”

Cyrus and Hemsworthannounced their separationin a statement in August, just seven months after tying the knot following an on-again, off-again relationship of 10 years.

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Hemsworth, 29,filed for divorce on Aug. 21, citing “irreconcilable differences.” The pair signed a prenuptial agreement ahead of their marriage, so a smooth divorce is expected, PEOPLE confirmed.

“She didn’t expect it and is a bit disappointed, but she is still doing well and has obviously moved on as well,” a Cyrus insiderpreviously told PEOPLE.

source: people.com