While Ted and Hayley remained estranged, a woman evangelist named Lily Light arrived in Santa Barbara. Hayley believed in Lily and became one of her followers. In a riotous protest against the ocean casino, Hayley unwittingly killed Brick Wallace's wife, Amy, when she hurled a homemade bomb into a bar where Amy was staving off the attack. Brick was inconsolable over the loss of Amy and became driven by revenge, believing Hayley was responsible for the tragedy. Ted married Hayley so he couldn't testify against her during the investigation into Amy's death.

Ted and Hayley's marriage was a rough one, especially when Jake Morton, who worked with Ted at the Abernathy Stables, fell in love with Hayley. Things went from bad to worse when Hayley was raped by a mystery person in early 1987. Both Jake and Brick were suspected of the crime, but the real culprit turned out to be Ken, a bartender at Johnny's Place. Ted and Hayley had trouble coping with the rape, which caused much tension in their marriage. The marriage deteriorated even more when Ted's ex-girlfriend, Laken Lockridge, returned to town to win him back. In the end, Hayley decided to divorce Ted and became involved with Jake, who went on to become a model.

As 1987 came to an end, Jake and Hayley became engaged. However, Hayley's newfound happiness was cut short in early 1988 when she was hit by a drunk driver named Blister. She died in Jake's arms, returning briefly as a ghost to offer Jake, Ted and Gina words of comfort.