Sounds like it's not the right time for a puppy, CL. You have worked so hard to "upgrade"(for lack of another word)
your home and the puppy might have added some unwanted expenses. That, and as you pointed out it was causing stress with W's sister. Somehow I would be afraid your wife would blame you!

I hope the intimacy part will come soon!!!! That seems like the missing link from what you have written. Feel the fear and proceed to the next step!