Do the kids prefer this situation? Of course they would prefer one home with two stable healthy parents.
But absolutely they adapt and they can be happy. We have a harder time adapting than they do.
The key to making it easily adaptable pretty much comes down to the parents. If you keep the animosity out of it, work well for the most part together, keep consistency in their lives, choose good new partners who care for the kids, they will thrives
The problem is ….. this is usually the hardest part for the parents to do and that’s when it goes awry