Is there hope? I have a WW

[LANE777]

Its been awhile since I've updated anything on my sitch. Nothing has improved at all. We've talked a few times and I know I backslid and Im pissed about it. I let her move into our rental home. She actually came over and picked up some things and I kind of helped her move in. It felt like the good ole days being with her and riding in the same vehicle together etc. So I did get my hopes high and started talking about "us". I asked if she wanted to go get a bite to eat sometime..she said no that she didn't want to. Okay, I knew I shouldn't have done that. Later on she went out with my D to eat and a movie. My daughter told me she is using a credit card to pay for everything. I just asked her the day before how she was paying for everything. I asked if she was using a credit card..she straight up lied to me. So the next time I saw her I called her on it. She had the deer in the headlights. She also told D that she has an attorney writing up the papers. I did not know she had hired an attorney. So I asked her about it. She verified that she has one and is in the process of getting papers written up for what she wants. I asked what she wanted. She said just the Rental house and that's it and child support. She said we could sit down together with her attorney and go over the details etc. This was all on the phone. I asked her why she wants to D me so bad. She didn't have an answer. She could not tell me why she wanted to D me. I asked if she was still dating OM and she said no that he was not ready for her. Any ways, she told me she was never coming home and that we will never be together and that the bad out weighed the good etc. She told me that she never felt like she could do anything on her own and that she wanted to prove she could do this all by her self... I kept my mouth shut but she lives in the house I bought before we got married and she is driving a car that is in my name. All of her medical bills are going to collection and credit cards are past due and one is in collection. She is like watching a train wreck. Needless to say she is in trouble and I probably talked way too much. She still knows I care for her deeply and that's the problem. 2 nights ago we had to go to the High school for my D15. We sat next to each other. We are decent to each other and act like like normal people. In fact no one would know we were separated. After the event, she said goodbye and off she went. Yesterday she went out of town to look at a car with her brother. I used to be in the car business for years. She called me and texted me wanting to know if they were getting a good deal or not etc.
So now today, I am going back to no contact. I feel like she still wants to have a relationship, just not the kind I want. I feel like I back slid big time by giving into all the conversation and telling her I still had feeling for her etc. It totally backfired on me. She is still living the fantasy and thinks the grass is way greener over there. Not sure what to do but go no contact/dark for a while. Its tough when you have kids though. One thing is that we are very polite especially in front of the kids. She did tell me the other day that shes not in a big hurry to do papers because shes so busy, but would like to get them done. The equity in the house is roughly 70k. She plans on paying off her car thats in my name and the credit cards that she wracked up under my name. I told her that rental was our retirement investment and for our kids college. She just doesn't get it. Both our home and rental would be paid off in 7 years or less.
Anyways, this is going longer than I want.