Catherine remained in England, living at
Somerset House,
[12] through the reign of James and his deposition in the
Glorious Revolution by
William III and
Mary II. She remained in England partly because of a protracted lawsuit against her former Lord Chamberlain,
Henry Hyde, 2nd Earl of Clarendon, over money that she claimed as part of her allowance and that he claimed was part of the perquisite of his office. Catherine's fondness for money is one of the more unexpected features of her character: her brother-in-law James, who was himself notably avaricious, remarked that she always drove a hard bargain.
Initially on good terms with William and Mary, her position deteriorated as the practice of her religion led to misunderstandings and increasing isolation. A bill was introduced to Parliament to limit the number of Catherine's Catholic servants, and she was warned not to agitate against the government.
She finally returned to Portugal in March 1692, where she took care of and mentored her nephew,
Prince John. His mother,
Maria Sofia of Neuburg, had recently died, and the prince had fallen into a depression. Catherine was instrumental in lifting the young prince's spirits, and soon became a key part in his life, as his tutor and main female figure in his life. Her death would, in fact, cause Prince John to experience another depression.