Thanks Stander and Regretful, I hear what you're saying, but I have this feeling that if I don't move out and she is forced to move out with the kids, she will resent me for it because she will blame me for not moving out which forces her to uproot the kids. The kids are our #1 priority in all of this, so i feel guilty not being the one to move. If I moved out, it would have less impact on the kids.
Who's forcing her to move? Not you. You want her to stay, right? Moving is her decision.
There's always a way to work through the logistics. In my case neither of us wanted to move the kids to another school, so their address is my address. We have 50-50 visitation (weekly intervals). Even when they're with me, W comes over to my house each morning and gets them off to school (I leave for work early). Even when she has them I pick them up each afternoon and bring them to my house, then W picks them up on her way home. This was all resolved before W moved. These are tough conversations to have, but it's got to be done if you don't want it all to blow up in your face.
It sounds to me like you're trying to justify your moving out. If SHE need space, why would YOU move out?