Does forgiveness mean you have to have a relationship with the person that hurt you emotionally? Or is it possible to forgive them, still love them as a child of God, but not want to associate with them? I'm hung up on this as far as an adult relative (in mid-30s). I don't want to have a relationship with him because of one too many lies he told me. I told him this then he came back quoting Mother Teresa and how we are to forgive people.

What I have been able to discern is that forgiving and bringing someone back into my friendship/confidence is not what Jesus' commandment is.

When I say I can forgive, that means I won't use what you did to me against you in conversation or in other arguments with you.  In the meantime, I may still hurt.  My trust of you may have been broken.  That broken trust in you is a consequence due to the action which caused me to hurt.  

When Jesus forgave sinners he told them to "go and sin no more."  (John 8:11) People who could not follow his edicts - like the rich man who said he wanted to follow Jesus and asked Jesus what more he could do as he was already following the law  (Matt 19:21) and then couldn't do as Jesus said - those people who couldn't, or wouldn't, follow Jesus, Jesus did not chase down and beg to return to him.  

The Catechism of the Catholic Church reminds us that in the Sermon on the Mount Jesus insists on a conversion of heart as well as a reconciling with one's brother ... (and that would mean any brother or sister in Christ) and a love of enemies. (CCC 2608).  

Not everyone is a brother (sister) in Christ.  Just who is a brother or sister?   Jesus said it himself;  "Whoever does the will of God is brother and sister and mother to me."  (Mark 3:35)     - Someone who is not following the will of God (ie: has a lifestyle of lying) yet 'quotes the Bible' (or Saints) to a follower of Christ is really just trying to manipulate a result. 

Also, we as Catholics know that in order for forgiveness to be obtained in the Sacrament of Reconciliation, true contrition "together with the resolution not to" do it again (CCC1451) is necessary.  A person who continues to do the same thing over and over - without trying to overcome it - is not showing true repentance.  Conversion has not occurred.

And ..."Absolution takes away sin, but it does not remedy all the disorders sin has caused." (CCC 1459)

In order for a reunion or a repairing of a relationship to occur, both sides need to do something.   One chooses to forgive.  The other sets things right and changes the hurtful behavior.    Without that change in behavior, that person is just spouting forth an empty set of words ... "I said I was sorry!"  

The Bible does not say we must make someone who hurt us our best friend, our confidante, or even bring that person back to his/her former status.  My goodness, Paul said in 1 Cor 5 to the Corinthian community that the person who was sinning by living with his father's wife should be expelled from the midst of the believers.  There was no repentance there!  

Is the person who is touting "bring me into your confidence," "trust me," really a ‘brother’ ('sister')?   Is true contrition being shown?  Is the natural consequence of the sin against you one which makes you leery of being near that person?  ie:  Does trust need to be re-built?  Trust building takes a long time.  When the sin is great, it may take longer to rebuild trust.  We are called to be discerning.  When the trust is rebuilt, then the other questions about renewing the relationship can be revisited and discerned anew.  In the meantime, remember that people can say anything they want, but just because they say it doesn't make it true.  He can tell you he's a zebra, but until the spots change and turn into stripes, he's going to have a hard time convincing anyone that he's not still a leopard.

Hope these thoughts helped!  Thoughts from anyone else?