Yes it is very sad. Nobody wins when a family is torn apart.
FWIW, I think you made the right decision not to stay in the house with her showing disrespect to you in front of the children. To me, that is damaging the kids and how they learn about unhealthy roles in a Marriage/family.
It is not about what you feel should work in your M. It is about doing the work that gets the right results. Do what works!