Yup. It sure sounds like it, soz.
onthequiet, you need to do something fast. Seriously. From the way you describe things, you could still get out of this thing alive and without ripping anyone's heart out.
Just keep it simple. Cause it is simple.
Do you love your wife? (assuming yes)
Then you gotta do WHATEVER it takes to straighten this up.
If that means telling her the truth, and cutting ties if need be - then I'd do it!
You are thinking about having an affair and you are obsessing and making a fool of yourself, and also causing a mess.
You could come out smelling like roses if you played it right. By standing up straight and doing what needs to be done to avoid a disaster.....even if it means you taking some slack for however long, and making some tough calls....in the end people will see that you are a man who does what is right.
I firmly believe that integrity wins out in the longrun. Don't just stand to lose your wife, your home, your hours and respect of your kids, your friends,.....but also your own self respect. That would be the real sh*tter; don't you think?
*Just my thoughts as an unmarried lass.