What I would do if I were you, I would go and talk to your neighbor. Be very civil, of course, and keep your head if he's being a jerk. Find out what the problem is, if he is angry that your dogs are barking, suggest to him that you will fix the problem by getting bark collars. If he says that he doesn't like it when your dogs charge the fence, tell him that you will talk to your wife and have her control the dogs when she is at home and you are not there. This guy feels like you have wronged him somehow, and perhaps you have by letting your dogs get out of control (barking nonstop can get annoying, charging the fence, those are things that I never would allow my dog to do, but I don't really have neighbors though, either). Since he feels that way, and perhaps it might be an unfounded claim, it is still your responsibilty to make peace with your neighbor. Keeping the peace is such a hard thing to do, but it is also necessary. What if he sees someone breaking into your home while you are not there (you and your family go camping with your dogs or something) and he just lets the robbery happen because no peace was ever made? Neighbors are supposed to look out for each other. Be the better person by swallowing pride and telling him that you are stepping up to the plate as a dog owner. If you want, tell him why you invested in these dogs in the first place. Perhaps if you get it all worked out, he would help look after your wife when you are at work. He is obviously a light sleeper. And if someone does hurt your wife, then you can seek his legal advice in the future.
Just some help. I don't mean to sound brassy or timid, but that is what I would do. There have been many times I have had complaints on my dog (when I lived somewhere else) when I was just a kid, and I would square my shoulders and go and talk to the people. I would ask them not to be angry at me, apologize for what my dog has done, and then ask them what I can do to make them feel better. Sometimes it is ridiculous, one time someone told me to put my dog to sleep (she was vicious, I was 13). I told the lady that I would keep her kenneled at all times unless I was outside with her on a leash. That made her feel better and the problem was resolved. I hated doing things like that, but as a dog owner, and trying to be responsible, that was what I had to do. It was my job. I absolutely detested that lady, but since I caused the problem, I had to fix it.
And you never know, perhaps when you get this thing worked out, you and your neighbor can have some good times together. My power went out for 12 hours the other afternoon, and I knew my neighbor's house was unlocked and that he had power and I could go there to feed my kids. I knew my truck wouldn't make it that far (they are my closest nighbors) so I had to stay home in the dark. But I knew that option was available, just like it will always be available to him and his family as well. It could be the start of a good relationship between you and him, just swallow your pride and apologize, even if you feel like you haven't done anything wrong, which is the hardest thing in the world (trust me, I know!).
Anyway...........I wish you the best of luck in the future and I hope one way or another you get it all worked out. Wish you all the best! Keep us posted on how you do. I know it can be hard and stressful, but don't let it get you down.
Sorry this is a novel...........