Maybe I should move out temporarily then. It is against what the L say but I can write up an agreement and go from there.
Why would you do that when your L and every last one of us is telling you not to? Here is what usually happens: LBH moves out to give WAW "space" or whatever. WAW has the house, the kids, and no spouse, win-win-win for her. The LBH ends up continuing to pay for the house while living in a dumpy little apartment. The WAW has OM over frequently and often even moves OM in. So there you are Anthony, living in some crappy place while your W has the house, the kids, and OM sleeping in YOUR bed every night no doubt having all kind of wild sex you haven't dreamed of with your W in ages. So how does that sound? If you think all of that is OK with you then by all means move out, but I really hope you have more backbone than that!
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I love my children and I don't think she is mentally stable at all which would cause me not to go that route.
You don't think she's mentally stable, but you would abandon the kids and house to her? Why?