Are you snacking along with your kids? I found that my diabetes improved when i had my son because my life became much more regular and I made more effort with meals, etc. I think you probably need to discuss having a good routine and a good diet with your wife. If you are willing to take on half of the shopping and cooking routine, I'm sure that will help. You can also make sure that you are not consuming lots of hidden carbs too.
I used to exercise with my son. We used to go the park regularly, go swimming and ride our bikes everywhere. I also cycled to work every day. All those things really improved my control, set my son up with good habits, and gave a us a good, solid relationship.
I think diabetes can be combined very well with family life. And a good routine would benefit your wife too. Her health would improve too, I'm sure.