Speaking to the Mirror, Sutton said: "Rachael and I had a wonderful relationship and marriage. It was very sad but amicable, and we remain friends."
The couple, who met at Glastonbury Festival, confirmed their relationship back in 2017 and were married in a ceremony in Glastonbury in 2018.
According to the publication, James and Rachael's relationship "hit a rocky patch during lockdown" and the pair decided to quietly split.
Back in July, the actor, who has starred as Hollyoaks' John Paul McQueen since 2006, confirmed a year-long story for his character in the aftermath of a homophobic attack.
The attack, which aired on July 19, saw a group of homophobic men beat John Paul unconscious outside The Loft.
Speaking exclusively to Digital Spy about how the attack will affect John Paul's life, James said: "The attack is the catalyst for the next six to 12 months of John Paul and this next storyline I've got coming up.
"He's vulnerable, he's lost, and he feels like he doesn't really have much identity. He is searching for something and through that vulnerability and through that trauma he's endured, and through that lack of sense of self, he is searching for something.
"Carter is someone who is very confident, very assured, very articulate and he makes John Paul feel a bit more human again – I think that's the best way I can put it. He listens to John Paul and he's good at giving him advice. John Paul takes an instant liking to him.
"He's just very lost and very vulnerable and he's looking for something and for someone and we just have to hope that no one take advantage of that…"
From Monday, September 25, Hollyoaks will stream first online via Channel 4 each weekday. Episodes then air on E4 the following day, before getting their YouTube premiere a week after that.
Selected omnibus episodes are available via Prime Video.
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