"I was so shocked," she said. "I looked at him and I said, 'Who are you?'"
She said her husband has now chosen what he wants to do. "He could have chosen otherwise. I mean, this would have been the time when he could have said, 'This is who I am, this is what I want to do.' But he said, 'No. I love you, I love our family.'"
Although she says people have accused her of being naive, or co-dependent, she said, "I think we have to have the freedom to be able to make choices about our lives. And just as my husband has made choices, I've made choices."
Last June, the Haggards were finally allowed to move back to Colorado after his severance deal with the New Life Church expired at the end of 2007.
Ted, Gayle and Christy Haggard are all now working together, selling family insurance from their home.
Christy Haggard said the family dynamic is different now. "Prior to the scandal, keeping face was important. I always held my parents on a pedestal. They seemed too good to relate to if you want to look at it like that. I always was very in touch with my humanity," she said. "I always felt like a flawed human being. I questioned my salvation all the time. And now seeing a man that genuinely loves God and yet is genuinely human gives me hope. Gives me hope that I can be like that."
Now that Haggard is no longer a leading Christian conservative he is free to speak freely about the movement.
"I think the religious right is increasingly impotent right now in America," he said. "And it's going to have to return to the gospel in order to regain its strength."
Haggard said he has no plans to start another church.
"I've got too many conflicts on the inside. I may do some public speaking, but I'm very happy selling insurance," he told "GMA."
But after weathering the storm, he insisted his faith, and his marriage, are both stronger than ever.
"When I was accused, rightfully so, that was a wonderful day in one respect," he said. "It was a shameful day and a hurtful day in other respects, but it was a wonderful day because I could talk and I could process and I could be open. I'm glad it happened. I never fell away from God. I fell forward in this process. My falling was a falling forward."
See the HBO documentary film, "The Trials of Ted Haggard" Thursday, Jan. 29 at 8 p.m.