Congratulations! I would place one tall bookshelf in the corner by the window with some closed storage with doors on the bottom to hide office supplies from guests. The desk is too small for your needs. Try a longer length desk where you could put a file cabinet under the desk on either end and have two chairs that will slide under. You might want to consider losing one of the sofas to help provide more space. Now that two of you live there the use of the space may be different. Think about using two armless chairs or ottomans in the living room for guests which can easily be re arranged. Good luck!

Oh dear, you are squished. First I have to ask why do you store your shoes in the loungeroom? Getting rid of them elsewhere will return valuable space. Secondly look at what you need to store and whether you can store in a better or more practical way. Next I suggest that maybe you check out Ikea or similar, they do a great desk that allows for storage underneath but also look at shelving and other storage ideas so you can give it a nice built in look and have some consistency to make it look so much neater too. Try to minimise what you place in front of the windows too, think of how it looks from the outside looking in. Lose the basket too, it doesn't seem to have any purpose and would give you more space for a low cupboard. Maybe consider a downlight in the ceiling above the desk to eliminate the need for a lamp - everything like this takes up valueable space. Organise your office space first and then decide what space you have left for your lounge area but as far as that goes I think Anne has nailed it.

Can you take the curtains down? Do you require the privacy? You may be surprised how much space and light removing these suddenly frees up!
I would add white to the corner. Paint the desk high gloss white & bring a light colored plain rug to section of the area- and remove all that is unnecessary. You can always bring it back it you need.

Adding light and simplicity will reward you much needed space.

Definitely replace the curtains with something more streamlined, like a bamboo shade or Roman blinds. Perhaps a more comfortable chair? Buy or make a cushion for the bench for extra seating. Declutter!
The tall file cabinet in the corner is a great idea, that will help with the decluttering.
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