Lindy Yvonne Williams joked her de facto partner George Gerbic's Sunshine Coast property was so big she could hide a body there, her friend has testified.
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Williams allegedly made the comment before Mr Gerbic was killed and his charred, dismembered body was found on the side of a road.
"(She said) this is a big land and I could cut up bodies and bury it here and no one will notice," Williams' friend and former employee Elini Christensen told Brisbane Supreme Court on Friday.
"She just laughed."
Williams, 60, is on trial for the September 2013 murder of Mr Gerbic, whose torso was found burning on the side of a road near Gympie.
The rest of his remains have not been found.
Defence lawyer Simon Lewis suggested Ms Christensen had "invented" the claim during a police interview after seeing media reports about Mr Gerbic's remains being found.
Ms Christensen, who had worked for Williams in mop sales, insisted: "She said that to me."
Williams has claimed Mr Gerbic hit his head on a kitchen benchtop after slipping on blood from a cut on her arm he had inflicted as she tried to defend herself during a fight in their home.
After seeing Mr Gerbic slip, Williams claimed she locked herself in a bedroom, emerging the next day to see him on the kitchen floor.
She told police she left and returned two days later to find his body missing its head, legs and hands wrapped in plastic in a bathroom.
She has denied cutting up his body and said she did not know who did.
But Williams has pleaded guilty to interfering with his corpse after admitting to dumping the torso by Cedar Pocket Road and setting fire to the grassy area.
The jury on Friday was shown a 2007 Woman's Day article titled "I survived a crazed stalker" in which Williams claimed she was kidnapped and assaulted by a man in army fatigues.
She was quoted in the article as saying she was cut multiple times by her assailant.
But her long-time friend Janice Brennan testified Williams was "verging on hysterical" when she confessed she had fabricated the story and had cut herself.
Ms Christensen's friend Naibuka Tuitaru Sokovagone, known locally as "The Booker", also gave evidence, saying Williams had told him in February 2013 she was "having problems" with Mr Gerbic.
Mr Sokovagone said he offered to help Williams at the time, but repeatedly denied having had any involvement with her around the time of Mr Gerbic's death.
Williams had told police "a person by the name of Booker" may have cut up the body, prosecutor Todd Fuller said in opening submissions.
Sunshine Coast artist Wayne Strickland, another acquaintance of Williams, testified Williams had told him she sustained the cut on her arm in a fight with Mr Gerbic over his bisexuality.
The trial will continue on Monday.
Australian Associated Press
