Either way I did apologize for some of the things I said this morning. We talked about a S instead of the D, I brought up the S. I told her I still dont feel that D is the solution. I agreed that we need time apart, and we discussed the option of a S, with a new rental house, and I would stay with a friend. The agreement would be based on something in writing acknowledging the agreement to the fact i am not abandoning the family.
This is pure manipulation from her. She doesn't want to deal with the consequences of her actions. She wants you to solve her housing problem. Don't fall for it. What do you think will happen once she is in a new home with the kids and you are part time at a buddy's house? She'll be right back to "This will never work". Only this time, she'll have the house and the kids and you'll already be out the door.
If she really wants to try a S instead of a D the way you described, than tell her the only way that can happen is if she puts a stop to the D. If she won't do that, you know she's just using you. Don't let her.
Also, get Relationship Rescue by Dr Phil. It's great for communication. It will definitely help you stay out of her traps.