While a college student at UCLA, Hector
fell in love with fellow "JSA brat Hippolyta
(Lyta) Trevor, Fury. (In pre-Crisis
continuity Lyta was the daughter of the
Earth-2 Wonder Woman and her husband
Steve Trevor. In post-Crisis continuity she
is the child of Helena Kosmatos, the
Golden Age Fury, al though she was
raised by Joan Dale Trevor (Miss
America) and Admiral Derek Trevor.)
Hector and Lyta became engaged while
still in college. Shortly after the
disappearance of the JSA Lyta
discovered that she was pregnant. Before
their wedding or the birth of their child
Hector was murdered by the latest
reincarnation of Hath-Set, his parents'
eternal enemy, who resurrected the Silver
Scarab as an inhuman entity.

Excerpt from the Justice Society Chronology.

http://www.bitstream.net/~myke4/jsa/index2.html

After his death Hector's soul was waylaid
by Brute and Globe, renegade former
servants of Morpheus (Dream of the
Endless), who made him the new Sandman
(Sandman III). While in the Dreaming,
Hector contacted Lyta Trevor and renewed
their romance. Hector returned to the
waking world long enough to marry Lyta,
who, still pregnant, joined him in the
Dreaming. When Morpheus returned to
reclaim his kingdom he sent Hector, who
was really still a ghost, on to the afterlife an
d returned Lyta to the waking world. Lyta
subsequently gave birth to their chi ld, a
boy named Daniel, who later became the
new incarnation of Dream, Sandman V,
replacing Morpheus.

After a time in a spiritual limbo Hector was
reborn in a new body, magically aged to
adulthood, and entrusted with the artifacts of
Nabu, becoming the new Dr. Fate.