Your husband is right.
I'm surprised you haven't talked to the breeder - you should do that first thing in the morning. A responsible breeder will usually have back a difficult dog and may be able to help with retraining. Certainly the breeder should know about this.
I'm afraid the things you can happily do with her out of the house cannot make up for her being aggressive with you. She could seriously injure your children. However much you love her, you must take on board the seriousness of this. It isn't an acceptable risk.
Having said that, how much can you love a dog who goes for you and your children? It would be natural for you to feel anxious about what's happened with the dog, to question how you've raised her and to worry it's your fault. Maybe your blanket love for her is also because you feel guilty and 'it's not the dog's fault'.
It's never the dog's fault exactly, but still a dog can be too difficult to live with you. This breed can have issues as poodles can be aggressive when nervous, and cocker spaniels very timid. How your dog has developed is very most likely genetic.
Also, consider her hormones. She didn't have these as a puppy. Has she changed as the female hormones have kicked in? Is neutralising them and seeing if she changes an option? Have you spoken to your vet about all this?
Speak to the breeder. Speak to the vet. You need more than the trainer here.
And if the dog is terrorising you in the big room that is most of the ground floor, I would not be letting her have the run of it. Eating upstairs? This can't go on. Can she be corralled in a large enough section and have access to the garden to give her lots of free space but let you live normally, while this is resolved?
This is not YOUR fault, never mind the dog. You're doing so much. But you're not able to cope with this frankly dangerous behaviour and must get immediate help. Today.