DQ, For him to expose and be able to get a "no contact" order from the military to end this affair he will need proof for the military to do something...we do not know how this started but it is very unusual for an officer to have such a blatant affair with an enlisted person...even more so when the persons spouse is deployed.
AFWAW, you do what you feel is best for you but until the affair is over nothing will get better for you and your daughter...DQ is correct that perhaps it is best for you to prepare for life without her...if for no other reason your own peace of mind. The admission from her might be enough to save your retirement check...do not think that just because she gets some of your retirement you will get some of hers. If you make SMSgt your pay could become more attractive to her or whomever she is cheating with later. Do not get angry an do anything to get arrested...you will pay for it. You are in a great position now with her moving out and leaving yoru daughter...make sure you are keeping records on visits, support, missed visits, etc. Hang tough and never let her see you down. Stay busy.