Neill-Fraser was freed from Tasmania's Risdon Prison on parole on Tuesday after 13 years behind bars.
She was sentenced to 23 years in jail for killing partner Bob Chappell aboard the couple's yacht on Australia Day 2009.
Neill-Fraser has always maintained her innocence.
Sarah Bowles, one of Neill-Fraser's daughters, said she was relieved her mother was no longer behind bars after the family reunited.
"We're so excited to have mum out from prison after all these years, but I suppose this isn't the outcome we'd hoped for," Ms Bowles told ABC News.
"I think it's important that we remember that she is an innocent person who remains convicted of a crime she didn't do.
"This has renewed our energy, having mum out to clear her name."
Neill-Fraser was granted parole in mid-September and had previously indicated she would remain in prison while her conviction stood.
Independent federal MP Andrew Wilkie said he welcomed her release.
"While I have no view on her guilt or innocence, I do know for sure that she should never have been convicted in the absence of a body, weapon or motive," Mr Wilkie told AAP in a statement.
"Moreover the case was always riddled with doubts and unanswered questions, in other words reasonable doubt existed.
"I remain firmly of the view that there should be a commission of inquiry into the matter because, until there is, we will never know the truth of the matter nor have confidence in the justice system."
Neill-Fraser Support Group president Rosie Crumpton-Crook said the grandmother had been demonised since Mr Chappell went missing.
"She's not being released as a free woman. She will have parole conditions and the label of 'convicted murderer' hanging over her head," Ms Crumpton-Crook told AAP.
"This is not the end. It's the start of the fight to get her name cleared."
Neill-Fraser had launched several unsuccessful appeals against her conviction, including to the High Court.
She was found to have attacked Mr Chappell and dumped his body in Hobart's River Derwent. His body has never been found.
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