Well I would hate for you to lose your family over something like this, I feel that you can still give the truth and not only walk away unscathed but I'm betting you can walk away from this held in high regard. What you said here is pretty much perfect, just tweak it a bit.
I know the CO will want to discuss this with me during his visit, and I’m not sure I’ll be able to keep my feelings to myself, nor am I sure I even want to. I know that expressing my true feelings would get me DF’d and with that I stand to lose my family, but I just can’t continue on the way things are. I am even considering beating them to the punch and DA’ing. I have so much respect for those of you who have already ripped of the band-aid. Thank you all for your encouragement and examples.
So when the CO pulls you aside and asks why you turned in your resignation, put what you said here.
I was appointed as an elder a little over a year ago, almost a year into this mess, at age 30. Because of this issue, I have never been to a civil elder’s meeting. The division is deep and causes the brothers to speak to each other with contempt. This has caused me to see that the BOE is NOT directed by Holy Spirit, and that realization caused me to give myself permission to begin researching more about the org. So, over the last 6 months or so, I have become convinced that this is not God’s org., and I want out, but it’s extremely difficult due to family in (I posted more of my family story a couple of months ago).
Here's what I would tweak though:
"As you know I was appointed as an elder a little over a year ago, dropped right into the middle of this mess at age 30. Since I've been an elder it's been a warzone in every elder's meeting and I feel like I need to dig a trench just to survive it. Every elder talks to each other with absolute contempt, I'm really struggling with seeing how these men were appointed with holy spirit to lead the congregation when they can't even lead themselves into agreement. I just feel like at this time, until this issue goes away permanently I don't feel comfortable going to elder's meetings and if I'm not attending elder's meetings I don't think that I should be an elder. If the issue is resolved and the elders start acting civilly with one another I would consider becoming an elder again."
This basically puts the ball in their court, if they say something to the effect of "We'll make sure the matter drops", just tell them "That's been said numerous times and I'd like to believe you but I'm going to have to see it." The CO would understand the situation is very stressful and a newer elder wouldn't want to see something like that anyway, so I'm sure he would be sad that someone was stumbled but would understand why you're stepping down. The rumour mill would run wild for a while but after that dies down, you'll be treated with respect and then maybe you can start a fade.