I don't know if $1,700.- is okay.
But what I know is that you have to be patient. Wait and see what happens with her taking pills and not being able taking care of the kids.
If so, call CPS. Call them once, twice, whenever it appears she might not be able to supervise the kids.
When the kids are older they can decide where they wanna live.
Tell them the truth, but word it so they can understand. Cut out the cheating part.
Just say that there was a time where mommy and daddy were in love and lived together and that this time is not there anymore.
You know what I mean... I cannot word it exactly how I would like to (Sorry for my english).
It also depends on where she lives. Make sure you put everything in the divorce paper, like school related stuff, doctor and medication, visitation holidays, etc.
With that in writing she cannot tell you "no, not today... maybe next week" blah blah blah... Or put the kids on medication like she wants to (for whatever reason), switching schools and try to break you apart from your kids.
The thing you have to look for is called parental alienation syndrome!
Make sure you get as much in writing as possible!
BTDT... my ex. wife is evil and I'm not kidding!
Oh wow. Sorry man. I hope I dont have to go through that.