In late 2012, Lahbati used her Twitter account to express her dissatisfaction with her network, GMA and expressed her desire to be released from her contract. On January 10, 2013, GMA Network and GMA Films president, Atty. Annette Gozon-Abrogar, countersued Lahbati. On January 11, 2013, GMA-7 filed a formal complaint against Sarah Lahbati for breach of contract. She is now facing multiple charges. In a related article published in PEP last January 9, 2013, Atty. Felipe Gozon, the head of GMA Network, released a statement indicating he did not guarantee protection that Sarah Lahbati said she was due. A few days later, Lahbati left the Philippines for Switzerland "to study". In August 2013, Lahbati returned to the Philippines to face the charges against her.
Lahbati is in a relationship with actor Richard Gutierrez. On August 7, 2013, it was reported by Philippine Entertainment Portal that the couple welcomed a baby boy named Zion in Switzerland on April 2013.