"By not spending every minute together, it's like their honeymoon is lasting longer," a source tells PEOPLE

Jennifer Aniston and Justin Theroux rang in the New Year under the sun.

The couple celebrated the start of 2018 with their annual vacation to Cabo San Lucas, Mexico, a source tells PEOPLE.

“Jen and Justin rang in the new year with friends. For the past few days, they have enjoyed the sunny Cabo weather,” says the source.

Aniston, 48, and Theroux, 46, were joined by a handful of close pals including Jason Bateman and his family.

“They have hosted friends by the pool and for dinner,” says the source. “They both seem great and very happy.”

2017 Vanity Fair Oscar Party Hosted By Graydon Carter - Arrivals
Credit: Anthony Harvey/Getty

The trip caps another busy year for the couple — Aniston signed on with Reese Witherspoon for a new Apple TV series, while Theroux filmed the comedy The Spy Who Dumped Me in Budapest.

And despite tabloid claims of trouble due to their frequent distance, Aniston and Theroux’s two-year marriage is solid, sources tell PEOPLE in the magazine’s new issue.

For more on Aniston and Theroux, pick up this week’s issue of PEOPLE.

“They have figured out a life that works for them,” adds the source. “Her life with Justin is great.”

Credit: Justin Theroux/Instagram

A second source tells PEOPLE that the distance helps them appreciate the time they do have together even more.

“This has not hurt their marriage at all, it seems to help,” says an entertainment source. “They love and respect each other and do spend a lot of time apart. For them, it is a healthy part of their romance.”

When Aniston isn’t working, she spends most of her time in Los Angeles with her close-knit group of friends, while Theroux often visits New York City.

“Justin often spends a few days in NYC by himself. When he is in NYC, Jen will catch up with friends and enjoys her own life,” says the first source. “When Justin is in LA, it’s very special for them. They socialize together with friends. They often go out to dinner or have people over. They both seem very happy.”

“By not spending every minute together, it’s like their honeymoon is lasting longer,” adds the source.

  • Reporting by LINDA MARX