"Meghan is very aware that Kate will be Queen; their roles are very clear," the source says.
Even though there is a base level of respect between the Duchess of Cambridge and the Duchess of Sussex, the source adds that the two women share 'no common ground'.
"Meghan doesn’t fit the mould, while Kate was groomed for this," the source dished, before adding that in comparison the former Suits actress was a "fully formed person" before she married into the Royal Family.
The source goes on to explain that both women find it challenging when they are pitted against each other.
"What’s challenging is when they are pitted against each other. That’s been challenging to both of them.
"Meghan has her life, Kate has hers."
The source continues: "William and Kate toe the line, maybe because they have to, but Harry and Meghan are saying no—no to releasing the names of Archie’s godparents, no to saying where Meghan gave birth.
"They are trying to carve out a different sort of public life and reset the rules."
In spite of everything, the Duke and Duchess of Sussex main focus remains on their son, Archie.
"It’s very much still about taking care of him and putting family first."