Jay bob, You are being naïve. Your wife should never see or talk to this man again. I made the EXACT SAME MISTAKE as you are making. I allowed my wife to continue to work with the person. She would copy me on their work emails, he promised it would never happen again, and I didn't tell his wife. It started back up, and went on another two and a half years.
Step 1- Tell his wife everything that you know. Get everything out in the open, and get an ally on your side to keep them apart. Do not tell your wife of your plan, she will talk you out of doing it as my wife did. The single biggest thing I finally did to end my wife's EA was to tell the OMs wife.
Step 2- you wife quits immediately: no notice.
Step 3- either you or your neighbor moves far away.
Choose not to follow those steps at your peril. As Sandi states, affairs are an addiction. She may have meant it when she promised to quit, but there's no putting that horse back in the barn. Given a little time, it will start back up, only HOTTER than before. Affairs heat up after each time the attempt to separate and then get back together. Learn from my mistakes and ACT! -HS