Wifes best friend threatened me with police action because I accessed his mobile bills to catch her?

My wife and I have been married for nearly ten years and have two small kids. We are both Indians and live in Delhi, India. For the last few months, I had noticed a change in her behaviour and she seemed to have no time for me or the kids. She was spending a lot of time on the internet and on the phone. I found an... show more My wife and I have been married for nearly ten years and have two small kids. We are both Indians and live in Delhi, India. For the last few months, I had noticed a change in her behaviour and she seemed to have no time for me or the kids. She was spending a lot of time on the internet and on the phone. I found an sms at 11 PM in her mobile phone one day and suspected her of having an affair. I confronted her and she denied it totally. I then proceeded to get mobile phone bills of her "friend" and was shattered to find that he called her almost everyday, talked to her for more time than she spends on the phone with me and sent her 4-5 text messages everyday. She also used to delete all his sms messages and his number from the call logs. My wife went to her parents home after fighting with me about this saying that I was wrong and she was just friends with this guy. A week later, her friend suspected me of hacking into his gmail and she fought with me about it. Thereafter, he sent me a threatening email saying that my career is over and he will ensure that I go to prison for accessing his mobile phone bills and hacking his gmail etc. My wife had absolutely no comment to make about this, she even protected him saying that I should not have accessed his mobile bills. We were headed for divorce courts but are presently trying to settle our differences for the sake of the kids. She absolutely refuses to stop talking to him. She says she wants both me and her friend in her life. Husbands out there, please tell me if you could accept this "friendship", would appreciate quick answers since I am hoping to have a heart to heart with her tomorrow. Thanks in advance for your help.
Update: I do love her a lot and am not worried about any potential police action from the silly dumb f**k. My question is should I accept her and continue to live with her?
Update 2: I did not actually hack into his gmail. The guy says his gmail was accessed from a blackberry. Even an accomplished hacker would find it difficult to do that. He may have accused me of hacking to create a further divide and she fell for it.
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