Margo was Eric Forrester's faithful assistant for many years, and had secretly been in love with him for a long time. She finally got up the nerve to tell him how she felt after a brief relationship with Ridge that ended because she realized he couldn't commit, but he didn't feel the same way. Feeling awful she attempted to quit working for Forrester, which pleased Stephanie. Eric insisted she was too valuable to lose. After her relationship with Ridge ended and she accepted there could never be anything between her and Eric, Margo began seeing publisher Bill Spencer, the father of the woman Ridge loved. Knowing that Bill was not popular with the Forresters after doing his best to destroy Ridge and Caroline's relationship and trying to hire Thorne away from the family, Margo kept quiet about their relationship. When she realized how deeply Bill cared for her she cancelled a trip to Switzerland with Ridge who had just lost Caroline.

Margo's relationship with Bill petered out and she got involved with Clarke Garrison who was also involved with Kristen Forrester. After Margo told newly married Clarke she was pregnant, Clarke threatened to walk out of Margo's life for good if she didn't keep secret the fact that the baby was his. Margo's friend Storm Logan helped Margo draft a document suing Clarke for $100,000 in child support. Kristen learned the truth and Clarke showed no interest at all in his son, Mark. Margo brought Kristen's old boyfriend, Mick, to town to break up Clarke and Kristen but Margo was soon back together with Bill and engaged. Clarke did show an interest in his son after Mark was hospitalized but he had no desire to be a full-time father. Margo and Bill hoped that Bill could adopt Mark, but Bill's daughter Caroline didn't approve. Despite her marriage to Bill, Margo couldn't stop the way that she felt about Clarke. It looked like Margo and Clarke might finally reunite when he asked her to leave Bill. Margo surprised everyone, particularly herself, when she chose to stay with Bill.

Margo's younger brother Jake showed up in Los Angeles. She was furious and unwilling to talk to him since he had left home without a word years ago, but changed her attitude when Jake told her that their father had sexually abused him. Margo suggested he talk to their parents. Margo finally convinced Jake to go back to Wisconsin with her and confront his father, Ben. Ben denied having abused him. Jake attacked his father and it led to Ben having a heart attack. Margo remembered that their uncle Charlie was also living in the home at the time that Jake had been molested, and realized he might have been the one who abused Jake. She returned to the house in Wisconsin to confront Charlie, and ended up saving Jake's life. His secret exposed, Charlie killed himself. Once the drama with Jake was over, Margo went back to her marriage to Bill which had begun falling apart. Bill couldn't care less about Jake's problem or the abuse he had suffered as a child, and had resented Margo for not confiding in him about it. After learning that Bill was having an affair with Julie DeLorean, Margo decided the time had come to get a divorce. She got involved with Blake Hayes but it wasn't long before she realized that Blake wasn't stable and Bill was the man in her heart. When Jake confessed to stealing the BeLieF formula to protect Macy Alexander, Margo ended her marriage to Bill and returned to Wisconsin with her brother.