Hey Hold
Get your divorce started. It can be stopped before it goes too far if circumstances change. As you do so request in writing again that he moves out but do not discuss it with him (this will only end up with you upset again). If he won't budge (of course he is not going to) get yourself and your kiddies out and renting asap. Put it in formal writing that you are not giving up your rights in any way shape or form on the assets or the house.
Put everything you can in writing, it doesn't have to be through a solicitor if you cannot afford, just make it straight forward, impersonal and keep a copy. Start a diary of everything he says and does, when he puts you down in front of the children, goes off out leaving you with them etc.
Speak to an estate agent and if possible get the house on the market, it's not going to sell at all unless it is advertised.
Stop asking/expecting anything from H.
If he asks you anything say you will 'consider' it. Do not agree to anything.
If he starts insulting you again say that is your opinion and walk away. I know it hurts like crazy that someone you love and thought loved you can hurt you this way. You cannot change that hurt but you can walk away dignified leaving him looking stupid and petty with his insults.
Completely disengage from him all conversations are hurting you at present.
Seriously remove the childrens passports to a safe place along with any other documents you think necessary.
To be honest the longer he remains a wanker the more I would consider letting him keep ALL the debt that is in his name......