This is a cheating extravaganza.

You are married. Your wife cheated on you. You aren't divorced but are "hooking up" with people and now are seeing someone who is married. You are cheating, she is cheating = 2 cheaters.

She won't leave and now if she chooses to, she can claim sexual harassment because you are her superior so if you try to fire hire be prepared to settle a lawsuit out of court.

What a mess.