Angry posts, lol.
Yes, you are doing the right thing by distancing yourself. Although you knew each other when young, it doesn't sound like you were close friends with her over the years or anything, so any advice or support you might give her would be misconstrued. Even if you were her friend, it could still be misconstrued.
You need to ride this out and hold your peace. If you care, let her know, but also let her know she needs to sort her life out. Whether that is with him or you, only she can decide and its a decision she needs to make alone. Good luck.
Second thoughts can generally be amended with judicious action; injudicious actions can seldom be recovered with second thoughts.
--Cyteen by C.J.Cherryh