Hey Jason,
Please don't leave your kids alone with an addict. It's very harmful emotionally, especially when they don't know what's going on. It could also be dangerous physically sometimes... If your kids are there with her, you should be too. If you want to get out of this situation with her, take your kids with you.
I really hope you get the strength to get up and get out of this because your life and your children's lives can only improve by doing so... it'd probably be rough going at the start but it'd get better with time. She's treating you with no respect, and even like she told you, it's confusing the kids and damaging their minds. Please make a plan of some sort, when things go horribly wrong you'll be thankful you have it.
Hope you stick around Jason.