I think he loves OW. He told me she made him happy everyday.
I think he screwed her in this house.
Of course you are in shock and disbelief. Your H has betrayed and demeaned you and the children by leading a double life with your family ‘friend.’ You will soon find your anger and that will propel you forward.
These two liars have made a mockery of you and still are. OW has clearly been his primary relationship for a year or more, and his current despicable behavior indicates that he is desperately hoping to reunite with her.
Your trying to figure out OW’s true agenda is futile, but if they plan to stay close, hug and kiss, then OW is hedging her bets, the affair is not really over, and they will likely fully reignite at some point.
Do not underreact here. Allowing this practiced manipulator to control your narrative would be foolish and unwise. He feels no remorse, loyalty or fidelity toward you. His agenda will only bring further trauma and destabilization. I would send him away for now as a consequence of his massive betrayal. You cannot process this in his toxic presence.
Shine a light on their corrosive secrets. Tell smug pretender-friend OW that you know and bring her H out of the dark by informing him, both asap.
Infidelity recovery requires No Contact. If you are going to stay with him, then he must cut all contact and change jobs. Of course, this would only work if he were truly remorseful and highly motivated to give up OW.
Personally, I would divorce this self-absorbed, untrustworthy man who felt entitled to pursue a deep emotional/physical connection with your family friend and have sex with her in your children’s home.