Good grief. This man is a piece of work. I do say he will be going down the rabbit hole sooner than later. It's HIS CHOICE to live the way he is, do not feel guilty or sympathy for that.
Yes, please do whatever you have to do to separate yourself financially from this man. And protect your children's assets as well. He should be ashamed.
I am so sorry you are dealing with this, but it sounds like you are taking the right steps!
Huge hugs!