The couple battled big waves, strong winds, a broken engine and snapped rigging as they took about a week to sail to NSW.

On the evening of February 16, a boating-mad teenager, who was on holidays from New Zealand, spotted their vessel about a kilometre off Avoca Beach, and called police, believing it was a $130,000 yacht named Harlech, which had been stolen from Opua, north of Auckland.

Water police approached the yacht and told Mr Bennett and Ms Wright they were looking for a boat "similar to yours", possibly a ketch, a sailing boat with two masts.

The couple was arrested and Ms Wright was later released without charge

According to court documents, Mr Bennett made a partial admission: "I just want to say that Simone had no idea that the yacht was unlawfully stolen. I told her that I had paid for the yacht."

But in Central Local Court late last month, Magistrate John Andrews found Mr Bennett, 52, not guilty of possessing stolen property.

Mr Bennett's barrister, Richard Waldersee​, successfully argued the highest the police case could get was merely a suspicion the boat was the stolen yacht.

During legal argument before the alleged admission could be put before the court, Mr Bennett said he was only trying to protect his wife.

"I was told by police the yacht was unlawfully taken. And obviously my wife had no idea, neither did I, so at that time I just made that comment to save Simone."

The owner of the stolen boat gave police a detailed description of his vessel, saying it was a yacht, rather than a ketch, and had "Harlech" etched on a large cabinet in the cabin.

Officer-in-charge of the investigation, Detective Senior Constable Robert Gozdzialski​, told the court "Harlech" was not written anywhere on the intercepted vessel.

"I couldn't see, no," Detective Gozdzialski said.

Under cross-examination, Senior Constable Michael Hall agreed that he told the couple police were looking for a ketch.

"A ketch is a specific type of boat that has a cabin in the middle and masts at each end?" Mr Waldersee asked.

"Yeah, it's a two-masted vessel," Constable Hall replied.

"My client's not in a ketch is he?"

"No."

After her arrest, Ms Wright was asked why the couple left New Zealand at midnight.

"It was secrecy," she said.

In court, she said her husband told her he bought the yacht with money he moved from Switzerland to the Bahamas.

"He said different things over time, but closer to the time, he said that it was owned by ... an older couple and that the man's wife died and he was really sad and he just wanted to sell it."

Mr Bennett's charge was formally dismissed.