What's the best way to separate from the military due to having severe financial issues?

AR 135–178, Section 6-2. That is the section for hardship. HOWEVER, you need to read that section carefully. If your situation does not meet the criteria, then the hardship request will not be granted.

In my 6 years in the Army, i have run into 3 individuals who have applied for a financial hardship discharge, and so far, none have been approved. Reason being is that the civilian sector cannot afford the benefits the Military can. Even though you say you have a good paying job outside the military, you haven't been discharged yet and you will receive a general under honorable discharge which may affect your employment opportunities.

Don't get your hopes up or live above your means. I was a married PV2 on a single income in a similar situation and made it work because i budgeted my money better.

Ch6 AR635-200. Go see your chain of command.

Is this a temporary problem or a forever problem? Have you been to ACS to get financial management assistance? Is your wife disabled? If so, Are you registered with AFAP for respite Care? Enrolled in EFMP?

What gets fixed by separating? How will you earn a living? Insurance?