Sumguy....here's what you are not hearing or understanding....you can not talk to her. You can not fight this marriage dying by talking to her, you can't convince her of anything.
You are the one letting her pick fights with you. You are the one who is helping her whole heartedly send this relationship down the crapper.
Not only do you need to cut off all contact with her, you need to get a third party or maybe a couple of people, your parents perhaps and let them be the go between for the kids.
This is one of the most volatile relationships I see here on the boards.
You don't need to cut off contact forever, but you need to for a least a few weeks minimum. You don't like each other. You might still love her, but she doesn't like you and you don't like her.
She's not making money at night. She's not prostitutiing. She's trying to make you think she is just to piss you off. She said she'd take the kids, to piss you off and you're buying into all of it.
Stop taking her bait. You've become a game to her. That makes her sort of sick, and mean. But you can stop it if you want to.