Has your wife been diagnosed as bipolar and/or a particular depression? Is she taking medications to balance her moods? When someone is off kilter (for lack of a better word) impulsive tendencies can wreak havoc. Abusing prescription medication only adds fuel to the fire. Often folks who've been sexually abused as children embrace self destructive behavior.
In situations like this, it's good to trust your bullsh!t meter and start listening to that inner voice. Removing your children from a bad situation was a very good thing to do. And if we were all perfect, we'd do the right thing each and every time, especially when it comes to mind reading.
But we're all human and learn from our mistakes. Listen to your gut. Read "Hold onto Your N.U.T.S.", the ultimate guy book.
Take a deep breath. Man up.
Define your boundaries. Hopefully Puppy or gucci will come by with their rock 'em sock 'em male point of view.
It's wonderful to love someone so much.. but at the same time you have to love you. The person responsible for their personal happiness is the face they see in the mirror.
Get healthy in mind, body and spirit. Define your boundaries. The rest will follow.