1997: During a snowstorm, Sharon slipped on a patch of ice. At the hospital, she went into premature labor. Soon after, the newborn developed a lung problem and was rushed into surgery. Fortunately, the operation was a success. The couple named their son Noah. Meanwhile, Grace and her beau, Tony, believing that Noah had died, located Cassie, the little girl Sharon had given up for adoption. Upon learning that Noah had recovered, Grace and Tony kept mum. One night, Nick returned home drunk and, mistakenly thinking that Grace was Sharon, made love to her. Nick realized his faux pas and wrestled with whether to tell Sharon. In the meantime, Grace grew attached to Cassie and wanted to leave town with the little girl.

1998: At Tony's urging, Grace revealed the truth about Cassie to Sharon. Cassie's adoptive mother, Alice, resurfaced and began searching for her daughter. Nick was stunned when Sharon told him the truth, but he accepted Cassie. Later, Sharon suspected that Grace was attracted to Nick. Nick was disappointed when Sharon couldn't join him on a business trip and, drunk and despondent, he slept with Grace. To Nick's surprise, Sharon made the trip after all, and discovered the affair. Distraught, she rushed into the street and was struck by a car. She survived, but refused to accept Nick's apology, so he moved out. Later, Alice paid a surprise visit to Genoa City.

1999: Fearful of Alice's interest in Cassie, Sharon filed for legal custody, and a battle began in court. To create a picture of domestic bliss, Nick moved back home, but slept on the couch. His passionate plea on Sharon's behalf in court helped them to reconcile. But before the judge made his decision, Alice did an about-face and said that Cassie would be better off with her biological mother.