Tad returns to Pine Valley in 1988. He quickly has an affair with Barbara Montgomery (Susan Pratt), and then meets billionaire Adam's (David Canary) new maid, Dixie Cooney (Cady McClain). Adam hires Dixie, the niece of his bitter business rival Palmer Cortlandt (James Mitchell), with the ulterior motive of producing a son, an heir to the Chandler fortune. His affair with Dixie ruins his marriage with Brooke English (Julia Barr). Adam and Dixie then marry, with Dixie giving birth to their son, Adam Chandler Jr. (called Junior as a child, JR as a teen and adult). Dixie falls in love with Tad. They begin an affair. When Adam finds out, he gaslights Dixie and commits her to a mental institution, getting custody of their son. Tad rescues Dixie from the institution and helps her win back custody of Junior. They marry in 1992, but the marriage does not last long.