Please please please see an attorney before you sell the house. If there is equity in the house you need to have a negotiated agreement in place. What if he owes you money in the divorce, but he's squandered his share of the house proceeds? DO NOT agree to anything financial until you see an attorney. You need to protect yourself and your children financially. Rolling over and giving the WAS whatever they want has never ever worked to bring them home. Standing up for yourself sometimes does.
You've both been through some tough times and the depression that triggers can certainly trigger a crisis. But consider the possibility also that maybe your H is just an unsteady, unreliable partner. His track record with work and relationships doesn't sound very good.