"It'll be my first born and I've been waiting 44 years, so I'm happy," said Sally.
The purpose of today's hearing was to determine what jurisdiction the case falls under and whether Sherri was properly served.
The judge determined that Sherri wasn't properly served, so there will be another attempt to serve her within the next 10 days. The issue of jurisdiction is still being decided. The couple filed for separation in Los Angeles, but Sherri has a home in New Jersey.
The next hearing is set for August 6.
In addition to the custody battle with Sally, Shepherd is also fighting ex Jeffrey Tarplay for custody of their nine-year-old son.
In court papers filed in April, Tarpley accused The View co-host, 47, of making "poor parenting choices" and neglecting their son Jeffrey Tarpley, Jr., who has special needs. Later, Shepherd defended herself in documents claiming that she believes Tarpley is making up excuses "as part of his attempt to gain more custody and more child support."