Kelly's second marriage (1993–2001) was to actress Kaarin Fairfax. "The Monthly"s Richard Guilliatt travelled with Kelly, his band and "his new love and future wife, the diminutive" Fairfax on a section of the group's US tour prior to the release of "Under the Sun". The couple have two daughters, Madeleine (born 1991) and Memphis (born 1993). From 1989 to 1992, Fairfax supplied backing vocals on tracks by Paul Kelly and the Messengers. In 1990, as Mary-Jo Starr, a country music artist, Fairfax released three singles, and an album, "Too Many Movies". Memphis Kelly starred alongside her parents in the Rachel Perkins short film, "One Night the Moon" (2001), for which Paul Kelly composed the score. After the couple separated in 2001, Madeleine and Memphis stayed with Fairfax, but Kelly maintained contact with his daughters. In 2010 Madeleine and Memphis formed a pop indie trio, Wishful, with Sam Humphrey; they were later joined by Harley Hamer and Caleb Williams. In March 2014, Wishful performed at the Port Fairy Folk Festival.