In early 1995, Selena's family discovered that Saldívar was embezzling money from both the fan club and boutiques, which led to her firing in the first week of March. On the morning of March 31, Selena agreed to meet Saldívar at a Days Inn motel in Corpus Christi to retrieve financial records Saldívar had been refusing to turn over. Saldívar delayed the handover again by claiming she had been raped in Mexico. Selena drove Saldívar to a local hospital, where they were told that the gynecological exam was to be done elsewhere, because the assault had allegedly happened in another country. They returned to the motel, where Selena once more demanded the records. Saldívar then took a .38 Taurus Model 85 revolver from her purse and pointed it at the singer. Selena tried to flee, but Saldívar shot her once in the back, severing an artery. Critically wounded, Selena ran towards the lobby for help with Saldívar in pursuit calling her a "bitch". Selena collapsed on the floor as the clerk called 911. She later died in a hospital from blood loss at 1:05 pm.
Jurors deliberated for less than three hours on October 23, 1995, before finding Saldívar guilty of first-degree murder. Three days later, on October 26, she was sentenced to life in prison with the possibility of parole in thirty years; this was the maximum prison term allowed in Texas at the time. On November 22, 1995, she arrived at the Gatesville Unit (now the Christina Melton Crain Unit) in Gatesville, Texas, to be processed.