Katrina Munting was abused by Marcus James Pollard, her high school science teacher, in the late 1990s when she was a student at Rose Bay High School.
She is suing Pollard and the state of Tasmania, his employer, for damages in a civil case before the Supreme Court in Hobart.
Pollard was sentenced in 2020 to three years in jail with a non-parole period of 18 months after pleading guilty to one count of persistent sexual abuse of a young person.
Mrs Munting's husband, Danny Munting, who also went to Rose Bay High, gave evidence at the judge-only trial on Thursday.
Mr Munting said he disclosed the abuse to the school's then-principal at a meeting in 2000 after Mrs Munting had told him during the early stages of their relationship.
Mr Munting said he was told Mrs Munting had to provide a statement to be taken to the education department.
He said at a later meeting the then-principal said the abuse allegations had been put to Pollard and the teacher had been given the option to resign rather than face any further investigation, which he had chosen to do.
"(The principal) said at the time Pollard wouldn't teach again," Mr Munting told the court.
Mr Munting told the court at the initial meeting the then-principal said "concerns" had been raised by others about Pollard.
Barrister for the state, Kate Cuthbertson SC, said there was no evidence of such concerns being raised in a later statement provided to police by Mr Munting about the abuse.
She suggested it was because nothing was said about concerns at the initial meeting.
"I disagree with that," Mr Munting replied.
Mrs Munting, who has complex post-traumatic stress disorder, is seeking damages for injuries and lost earning potential.
Mr Munting said Mrs Munting changed her career path in late high school from wanting to be a scientist to pursuing science teaching.
He said after the abuse disclosure her confidence dropped and she became insecure and very apologetic with her behaviour.
The court has previously been told Pollard later worked at the University of Tasmania, at the same time Mrs Munting studied there post-school.
"(She was) very stressed at university around coming across Pollard in the spaces in the school," Mr Munting said.
"She would see him driving to the university and she would fall apart."
Pollard, who has not appeared in court despite being called, has filed a defence which denies some particulars relating to the abuse.
The trial continues.
