You are in a tough situation because your T is misbehaving in a major way. However, you need letters from him. Can you get the letters from him and talk to him about it if you feel it is safe. I'd consider reporting him. However, a classmate of mine had a T try to escape goat her by trying to give a personality disorder. T's have the power to try to make us sound crazy if they are unethical. This T is definately unethical. You might want to talk with another T about the situation. He/she might be able to help you bring charges if you chose to do so. Also, I suspect that your issues will be dragged out. For me that is what would make me think twice about reporting a bad T.
As for his marital problems, he should be getting help in order to keep that from interfering with his therapuetic relationships. That is part of the code of conduct.
As you can see, a part of me wants you to report him. However, I don't know if I could just because of the power that he has over you. The letters that you need and the information that he knows about you. But, I hope you find a way to figure this out.