Hello there,
The symptoms you describe make it seem like your wife might be having some subconscious stress which might be reflecting in her disturbed sleep and nightmares which could be due to several reasons. It is important to understand the root cause that is making your wife sad or upset, and then come up with solutions or strategies in order to reduce the upsetting thoughts. Visiting a psychologist would perhaps be beneficial in fastening this process. For the time being, it would help if your wife would engage in activities that bring her pleasure during the day and do relaxation exercises at night, like deep breathing, in order to calm her mind and body before she goes to sleep. Also, encourage her to write a thought diary to express her emotions or talk to someone concerned.
Next Steps
Visit a psychologist
Health Tips
Make your wife join a hobby class of her interest and socialise with friends, so that she would enjoy the time she spends there