Ethan's devotion to his wife was shaken by the proximity of Theresa, and he found himself repeatedly drawn to her, jealous of her new relationship with his brother Fox Crane and tortured by memories of their past. The two shared passionate kisses on the beach in L.A., which were unfortunately caught on camera by a news reporter; when Gwen saw her husband with Theresa on camera, she left the hospital looking for her husband. A confrontation with Theresa led to Gwen being hospitalized. The doctors at the hospital informed Ethan that he had to choose between his wife and unborn child but before Ethan could choose, the doctors came and told him that they had lost the baby. Gwen and Ethan later named their daughter Sarah. Upon returning to Harmony, Ethan swore to his grief-stricken wife on their daughter's casket that Theresa was out of his life for good.