Greetings, dear JM... and peace to you. I would not tell you what to do about your situatuion; that is your decision to make. I can tell you what your situation sounds like to ME, though, as you've presented it... and that is that your wife doesn't wish to be married to you... but wants you to end it... so that her conscience is "clean". I realize she's not a JW; however, JWs aren't the only ones who live in such dichotomies (where they "believe" in "till death do us part" but actually want out - how to reconcile that? Not all can.).
It sounds like that if you were having an affair, though, or went beserk on her for "having" one, or just got sick of her [shenanigens] enough to walk... welll, then, she's not responsible for the marriage ending, not technically. At least, not in her mind. As you've told it, here.
Because it seems... by her own words (as you've stated them here), among other things... that she really wants out... but doesn't want to be the one to make the move to end it, possibly because (1) she believes/knows either won't get as much/anything if she does (versus you ending it); or (2) she won't be able to reconcile her guilt over the marriage ending; (3) as well as won't be able to justify it to others/getting what she wants from you (Waahhhhh! "He left me; I didn't leave him/ask for a divorce!"), or (4) all three.
I mean, it sounds, if your story here is accurate (and there is always two sides, so...)... as if she wants to be taken care of... but has enough of a conscience to not ask you to take care of her if she doesn't want to be married to you but doesn't [feel she has] a "valid" reason to leave you. If she can get you to leave her, though...
Again, there are two sides. Could be you're a difficult man to be married to (no offense; they're out there, too).
Perhaps it's time to have a real... and calm... adult sit down and get to the bottom of the matter. You most probably should prepare yourself for how it might go (i.e., she may not love you - but it may not be something you need to take personally; you don't know, yet, and it happens. Probably more often than you realize). Maybe things aren't too far gone and counseling is a real option.
Bottom line, though, is that you two adults... have two, small, impressionable children. And it is them and their interests that MUST come first. Not you... or your interests... not by any means. Their feelings... and stable care... MUST be taken into consideration. Because they are the only two in this matter who had... and have... absolutely no choice or say so. They did not ask you two to bring them into this world - you decided that... and so now you have to handle yourselves accordingly. I am not chastising; I am only bringing out a point because you admit the two of you have been arguing. Takes two to do that, dear one.
So, no more fighting? Because there's reallly no benefit, no purpose, no point. No good when it's this kind. Rather, together with your wife, you should make a decision, the "best" decision... which is the one that is BEST for your children (which means you don't try to make what YOU want to become what's "best" for them - you only consider what is truly best for them. Which means you might have to talk with them, too).
And if your wife isn't mature enough to make such a decision... then you must make it. For your childrens' sake, not your own.
Again, peace to you!
A slave of Christ,
SA