Good for you. On the surface (and not knowing anything about this guy or his family), I feel bad for his wife. And even not knowing what kind of environment they work in, I can honestly say some of the best advice was from my first boss out of college: never shit where you eat.
Man, I don't know how far down the rabbit hole you want to go, but this doesn't sound good and likely hasn't been good for awhile. I mean, I don't care how much of a regular I was at Starbucks (I married a barista, by the way), but I wouldn't walk into her office and whip it out and rub one out unless I knew she wouldn't tell HR / sue the everloving shit out of said company.
I pity that guy's wife (and child) but I'm happy for you that you're out of that.