Rachel met Ted in her father's restaurant in Somerset. He recognized she was badly in need of a friendly shoulder to lean on, so he began courting her, driving in from Bay City each night to take her to dinner. A couple weeks later he proposed, she accepted, and they were married in the same hotel room she was staying in.
Rachel was completely but unrealistically in love with Ted. She even (mostly) made good on her promise to tell him the truth about all things.
Rachel's rose-colored glass were smashed when she learned her wonderful new hubby was the one who had broken into Russ's clinic. He was jailed for several months and she gravitated back into Steve's orbit. When he was released on parole, he and Rachel argued incessantly about the time she was spending in Steve's company.
They ran The Fireside Inn, a restaurant. When Steve felt he had lost Alice for good he turned to Rachel and she accepted him with open arms. Ted was in the midst of a move to Chicago which he hoped would get his family away from Steve's harmful influence. But he realized he had no more family when he walked in on Rachel and Steve in flagrante delicto.