Have you considered putting the TV above the FP with the sofa and painting on the large wall where you now have the TV? I'd do that and anchor the space with a large area rug that contains some of the colors from the piece of art. Then I'd put the two chairs where you now have the sofa. Put your present chair facing the FP at the dining end of the space, near enough to the sofa to share a side table. For the two new chairs I'd prefer swivels so they can flex if you rearrange. Look for a table to put with the new chairs too. Your dining furniture seems out of proportion and kinda spindly for your space and poorly placed. The vertical blinds need to be replaced with the same panels as in the living area. Just a tip; art should visually attach to a piece of furniture (5-8" above it) or if standing alone, the center of the piece or the arrangement of pieces should be 60" above the floor. Ignore high ceilings and decorate in the 6-8 feet where you and your furniture live.

I think a sofa/chaise combo would look good an be comfy for you. Two chairs (swivel is good) by the fireplace. If you need more seating, you could even do a chair/ottoman at an angle facing on the left side of the tv. Nice home! Oh, an area rug and coffee table would finish it off nicely.

They may not be able to move the tv due to cable wire location but if that is the case they could get an L-Shaped sectional that is apartment scale so it doesn't over whelm the room and will seat more people and would give you room for a square shaped coffee table in the middle, one that opens and stores things like blankets or toys. They also have square ottomans that have storage too. I would also add an area rug just to add some color to the room.

I definitely would move the TV above the fireplace. Get a large sectional that can fit the room comfortably and have it face the fireplace/tv. You will still be able to place your chairs on each side of the fireplace (facing the sectional). Complete this sitting area with a nice area rug that brings it all together. You will then be able to open up your dining/eating area with a long (rectangular) table that sits 6-8 instead of the round 4seat table. Then, hang the large art piece on the long wall between the back of the sectional and the front of the rectangular table. Your entire space will come together, look huge, and create the 2 areas you need. Happy entertaining!!!
www.matteodezigns.com

Thank you all....great suggestions. You all definitely have your creative juices flowing!!!

1) TV above the fireplace seems ideal; however my spouse is completely against the idea of TV over the fireplace and wants to keep it at the eye-level. We had hired services of a professional designer and she voted against it as well. We toyed with the idea of putting the TV in the corner but that would have been a skewed arrangement.

2) We do want to replace the vertical blinds, change the fireplace painting, get an area rug and coffee table. But all that is hinging on the new sofa and like to coordinate the colors with that.

3) The breakfast table has been there since we had the half wall and have not given a thought about moving it. But will think about it as well.

Lastly, any recommendations on where we can find contemporary or modern furniture and recommendations on online stores? We have most small and large furniture chains and retailers in our area and we have seen at over a dozen stores. However, they all have the conventional or traditional sofas. We liked some of the sofas at online stores including defysupply.com but not sure about buying online and like to touch and feel before we buy.

Thanks again

Question for those who prefer the TV over the fireplace - isn't the fireplace the "heart" in a room? It should be used for showcasing artwork or even setting a tone for the room (place collectibles, floral arrangements, etc). Having a TV above the fireplace detracts from the interest you could bring. When you place the TV over the fireplace, you also force people to look "up" rather than the eye level when watching TV.

I would agree with you if we were talking about the Living Room, as it is always a more formal setting. However, in a Family Room where most tend to 'hang out', its acceptable decoration etiquette.
Also, the sectional placed to 'almost' center of the room facing the fireplace, is perfect for viewing...kinda like the movie theaters. I really believe you will like it, but at the end of the day, it is a personal choice for your comfort zone. Let me know what you decide!
Best, MatteoDezigns

Oh no, no - do not put the tv over the fireplace. Listen to your husband and decorator, they are right on the money. Also, your seating is probable too far away from the tv so you could move it closer and have a walkway behind it.

You do need something to define the two spaces, it seems a little too "open" to me. Consider a sectional set away from the windows so you can walk between the sofa and the windows to the conversation seating area near the fireplace.

I like the art. The smaller art is hung too high.