Seeing the switch to this "persona" is eerie. I have seen it too. While in this situation, it's with you, it isn't only with you.
Self image is important to a pwBPD, as they want to be seen in a good light. I think this is true for most people- we are more formal in the workplace and with co-workers than we are at home. We put our best foot forward in situations like job interviews. However, what we present to others is still genuine, still us.
With the pwBPD it can be so strangely different, surreal. You also know that real change isn't instant. Someone with alcohol addiction doesn't just stop like that. Someone with BPD doesn't recover like that. They can pull themselves together for short periods of time, when highly motivated by external circumstances. Internally, nothing has changed.
This feels surreal because it's not real.
The smear campaign is a part of this. That the marriage is not intact, can't be her fault. So it has to be yours.
When I began having boundaries with my BPD mother, this couldn't have been "her fault" so the smear campaign followed. Her extended family aligned with her.
In my own experience, while you can confide in a few trusted people, for me, trying to counter this with my own narrative would have only reinforced this. I would be seen as badmouthing her. Her family already believed her narrative. However, I believe that truth prevails and so kept silent with them. Eventually, they experienced her behavior for themselves.
In addition, they were supportive to her. She needed them. It was better that way. So if your wife's family, and mother are there for her, then it's a good thing. You can have your own support system too. That they believe you are some kind of ogre might feel hurtful but- that isn't something you can change anyway.
The kids will be OK. It may be a challenge going through it but because you are taking care of you, having boundaries, you can "be there" for them in a way you were not able to before. While I believe you were there for them in the best of your capacity, your stbx wife also has taken a lot of your focus. Once through this, you can have more capacity for you and them.
You will also eventually have control over your finances, and be able to make decisions for your resources. Finances may be tight for now, but without the constant spending, you will be able to build your reserves in time.
If the smear campaign involves your children, I believe they will understand in time. Your stbx will still be their mother, always. You will be able to be of support to them as they navigate this relationship as adults, and also be able to provide for your son's needs.
I wish you the best in this process.
Thanks NW. A lot of wisdom here. My therapist says based on my reports she sees a lot of NPD traits in my wife as well. Image is so important to her. She wants to look like a victim to everyone outside the home and make me look like the 'bad guy'. She wants to appear like the loving, perfect wife who is making all these changes and efforts in our home and to the kids so I look like the guy that's tearing the family apart.
My kids I think will be okay. My daughter 100% is open with me and she's been the target of abuse and seen the reality. She knows mom tells distortions sometimes. For example I was trying to de-escalate one night and leave the house. I grabbed a backpack and was trying to exit while my wife blocked me and pushed me screaming. My poor daughter (I think 18 at the time) was seeing the whole thing. While my wife was pushing me and I was doing nothing but holding onto my backpack my wife started yelling at me to stop hitting her! I said what are you talking about and my daughter crying at her said the same thing, it was so sad to hear her craying and say "what are you talking about mom, dad isn't doing anything, you're hitting him!". Makes me sad to remember that awful stuff.