Newman was born on March 2, 1952, in Los Angeles, California, the granddaughter of a cattle rancher from Arizona. Her family is Jewish. She is the youngest of four children and a twin (brother Paul). Her sister, Tracy Newman, is an Emmy Award-winning television Writer. Newman attended Beverly Hills High School in Beverly Hills, California and graduated from there in 1970. Newman married actor-writer-director Chad Einbinder in 1991. They have two daughters, Lena (born 1991) and Hannah (born 1995).