I think she is so traumatized by what she has done and the guilt,
Wishful thinking, KTO. She is not traumatized whatsoever! The guilt isn't eating her alive. If she feels any guilt whatsoever at this stage.....it isn't much. I know......all you H's want to think guilt is driving her to act illogically, but that's just not the case in most instances. You are the logical LBH trying to make sense of his WW actions, and you can't do it. I can spend hours trying to help a LBH understand, and he'll turn right around and ask about something I've just tried to explain. B/c he is seeing her as the old W he married, and he is too emotionally attached to her. That's why you have to emotionally detach from the drama she tries to bring. You can't rationalize crazy!
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I know she wants her cake and eat it too, but why does she think this will still work? Why does a WW not understand that there are only 2 people in a marriage?
She understands plenty. This is a wayward W choosing from her own free will. She's not contacting you out of guilt. She wants back into her own bed in her own house. It probably cramps her style staying at her parents.
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I realize she had 3, but I didn't know, and now that I do, is she really believing it can stay that way?
She thinks she is smart enough to pull it off. WW's think they are smarter than the LBH.
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My W definitely dropped some ranks too by going with him.
Classic for WW's. It's not about the OM's looks or money. It's all about how he makes her feel. And, if he stops, she'll find OM #2 or OM #3, until she has strong enough consequences to smack reality in her face. Until then, she's going to play the LBH for a fool, and use as many benefits as she can get from him.