Ok, you need to go and sit down with someone to do a little estate planning here.  I understand about the whole agreement about the money and the Will but for all intensive purposes you co-mingled the money here and now it looks like it is marital property.  So yes, I would speak with someone about taking it out and putting it in your name alone, although I think you may have messed that up here.  You should also talk to someone about placing you personal assets - all of them - in a trust for the benefit of the children, possibly irrevocable given the circumstances here, and the legal ramifications of it all. Possibly give you and your wife a life estate in the house. Something to protect you "in case."  Get help now.  Good luck.