While filming Xanadu, Lattanzi met Olivia Newton-John, whom he married in 1984. The couple had one daughter, Chloe Rose Lattanzi, born on January 17, 1986. By 1992, his acting career was largely over, and he took a job as a contractor for a homebuilding company in California. Lattanzi and Newton-John moved to their farm in Australia in 1993 so that he could audition for the new soap opera, Paradise Beach. He won a six-month contract for the show.