Sat around hugging old partner in US state (5)
I believe the answer is:
texas
'us state' is the definition.
(I've seen this before)
'sat around hugging old partner' is the wordplay.
'around' says the letters should be written backwards.
'hugging' is an insertion indicator (outside letters hug or embrace inside letters).
'old partner' becomes 'ex' (an ex-partner).
'sat' reversed gives 'tas'.
'tas' going around 'ex' is 'TEXAS'.
'in' is the link.
(Other definitions for texas that I've seen before include "Southern US state" , "11's favourite baseball team" , "28th US state" , "Breed of cattle -- non-Goths relax (anag)" , "American state, capital Austin" .)