Can I trust my wife who talks to a 'honey'-calling womanizer?

Me and my wife are happily married for 10 years and having a twins 4 years before. This incident happened 8 years ago, when my wife and her cousin visited the home town for a temple function they reconnected with this guy who is their old friend ( a distinct relative also), this person had an interest on my wife before marriage and my wife rejected. Now this person is married and having one kid. when they reconnected my wife's cousin used to do conference calls along with this person and my wife. My wife asked me is it ok to talk. i said yes it is fine but just maintain a healthy boundary. So she wont attend all the calls from them. Attended some conference calls for 5 to 15 min and dropped the call saying my husband don't like me in phone too much. this happened weekly once or twice for 2 month(maximum 10 calls). they also had a watsapp group, in that they had friendly chat between them, mostly between wife's cousin and that person. My wife's reply was very less. but when i was going through the messages they are not flirty messages, there i saw my wife saying very positive about our relationship and her cousin also agreed to that saying they are the best couples. but that person has addressed my wife's cousin and my wife occasionally as honey and dear. but both of them ignored and not asked them to stop calling like that. when i checked this with my wife she said that person calls everyone as honey/dear even her sisters and other cousin. Even he calls my wife's mother sometimes honey (she is very aged 60 years).it is habitual for him so she found no meaning in that and she is not bothered to correct that. this is not even a issue for her that's why she did not discuss this with me. that's why she ignored. i asked her to stop talking to him. My wife told she already stopped talking with him as he tried to make personal calls as she did not like it. that time the wats group also not active so she exited from the group and blocked his number. Recently we came to know that one of the relative girl got into affair with this person and this person got divorced due to that. 1. Does the words like honey can be used in friendly way. i have many friends in other gender i never used honey even though i used 'dear' occasionally. As he used this word with my wife, Does this make my wife less pure than other women. Is this cheating ? 2. I cant come in to terms with the fact my wife talked to a person who is a womanizer. does this affect my wife's reputation in the society. they never met in person other than this temple function reconnect.