Terri and Kaine Horman divorced in 2013


It was the first day that Terri Horman and her then-husband Kaine were left alone after weeks of being surrounded by law enforcement in the 2010 search for his missing 7-year-old son Kyron.

Their marriage already strained, Terri says, the couple had an argument before he put their 18-month-old daughter Kiara into his truck and left.

A short time later, a man showed up at her door demanding $10,000 and claiming she had tried to hire him to kill Kaine.

“I laughed,” recalls Terri in an exclusive interview with PEOPLE. “I said, ‘No, I didn’t,’ and called 911.”

She was never charged in the murder-for-hire plot, but she says she believes it was a scheme by investigators to get her to admit to something.

For more about the story and what Terri thinks happened to Kyron, pick up this week’s issue of PEOPLE on newsstands today. Tune in to ABC’s GMA and Nightline on Monday for a PEOPLE/ABC News exclusive sit down interview with Terri Horman.

A spokesperson for the Multnomah County Sheriff’s Office says they will not comment on the details of the case due to it being an “active ongoing investigation.”

Terri and Kaine divorced in 2013. She has not seen her daughter since he drove away that day.

Anyone with any information about Kyron’s disappearance, call 1-800-843-5678.