I am only an outsider looking in, but from your description it sure seems like your XW and this guy are building a house on a very weak foundation. Like follows like, and they are both probably very needy or emotionally needed people just filling the gap. Her as a WW and him as a LBS. I guess you get to just set back and wait for the fireworks, but at the same time you are going to need to be the rock for your kids.
Personally, I would never do an open relationship. It works against my moral fabric. I have said it before on these forums that I will never get remarried, and I would be interested in a serious monogamous relationship with a woman that preferably would keep her residence while I keep mine. I think its called living together apart. That is what I am shooting for, not sure if there are any women in my age bracket that would go for that.
H(37) W(35) D8, D5, S3 T20, M13 BD 8/31/18 EA Discovered 9/13/18 Mediation 10/3/18 W files for D 10/12/18 W moves out 11/10/18 EA confirmed 12/25/18 D Final 1/10/19