Weird eh?
'cause all of this must have originally started from her, right? (that's my understanding from the original statement, that his wife found out about it and was in contact with Kim).
It now sounds like they have come to some sort of "arrangement" doesn't it? Maybe she wanted a raise, maybe she's doing it for the money after realizing that would come to an end (so becomes another woman for Lloyd to "pay"), or maybe there was a coverup and he's using her part in that as leverage? Who knows ... who cares ... shallow people wallowing in their own mess.
Tip: never get involved in the lives of dysfunctional people. They will suck you into their vortex if you let them and you'll just be wasting your energy on nonsense.