We all have sinned and are under condemnation, we all fall short of the glory, the sinlessness and righteousness that God has. When one accepts the free gift of eternal life, ALL their sins are forgiven, blotted out, forgotten, removed as far as the east from the west (infinity), buried in the deepest sea, they are made whiter than snow, having Christ's righteousness imputed unto them, a robe of righteousness as it were, not ours, but Christ's given to us freely. ALL are sins were paid for on the cross, past, present, and future--they were all future for us when he died, eh? And ALL means ALL. When we enter heaven, we will be completely sinless and righteous, because of what Jesus did. God sees only the blood of Christ.
The Bible tells us to flee fornication, to flee denotes RUN, as if a great and terrible army were chasing you. It does hurt believers fellowship with God, but not their relationship. My child is always my child although we may not have fellowship due to disobedience. God cannot bless us as he would want to when we have sin in our lives. We think we know the right way to do things, but God knows better, we should trust him. Fornication can bring unwanted and illigitemate pregnancies, STD's, and much pain into many people's lives with whom we have to do. All sin has consequences in this life and loss of reward and position in the next. For the believer, it is not wise, and for the unbeliever, it is just one of the many sins that will condemn them in the last day as they did not accept the free gift of Jesus' having paid for those sins for them.