Her biggest fear is that her dad is a bad person .
Umm, well - he IS!
Wow, this is so awful.
Does she even need to tell dad she knows, or just tell his wife? Keep daughter out of it, just tell his wife, ask HER to keep daughter out of it, I'm guessing she has other ways of finding the goods on him?
I'm just spitballing here, but it seems unnecessary for your daughter to be triangulated into the middle of this - I fear him blaming her for him being found out (even though we ALL guessed it!).