updated 10/29/2013 AT 1:35 PM ET
•originally published 10/29/2013 AT 3:10 PM ET
“This is a very hard time for her,” a pal of the actress tells PEOPLE. “She’s very upset.”
Now that the news of her relationship has been made public, the former American Idol sweetheart appears to be at a crossroads.
“Katharine cares about Michael,” the pal adds. “But she still cares about Nick too. She didn’t mean for anyone to be hurt.”