She does exist as EX-OW has mentioned her before, and DD4 has mentioned an 'Olivia' which is apparently a little girl the same age as DD4, which I presume is OW's DD.
I am not convinced that they are more than good friend's though, and he is still going to all these events and stuff on his own. He maybe slept with her once or twice. But my impression is it's not serious as no one else knows and he's still acting like a single person.
I know he has been friends with her a while and probably just chose to refer to her as OW because I stopped him taking DD4 on holiday and he wanted to upset me. It worked.
However, I am not letting it upset me now because it won't last.