Do Jewish people believe that G-d resides in each human being?

Hi Everyone,

For some background, my wife and I are in an interfaith marriage. I am Roman Catholic Christian and my wife was brought up Jewish, but is currently spiritual.

We are talking about our beliefs and she said that Jewish people believe G-d resides in us / is a part of us. My understanding was that in Judaism each person has a personal relationship and encounter with G-d, but he is not literally in each person.

Are either of us correct?

TIA!