"Don't complain about people wiping their feet on you when you've put yourself out as a doormat."
Your husband has all the morals of an alleycat with no tact or diplomacy for stating the obvious - he's tired of looking at you for what he sees in himself: weakness for responsibility(understatement). I dare say you've allowed this for some time and turned a 'blind eye' to this hoping 'things' will take care of themself. Having gone through this with 4 sisters, YOU will NEVER come to the realization that YOU and YOU KIDS have intrinsic value and are worth much more than he's acknowledging UNTIL life's harsh reality touches YOU and YOUR kids. And, ... it now has! (Jerry Springer makes a living from people with the same situations!)
The initial 'shock' of what 'he' wants and demands, (which was designed that way on his behalf) is scary! Counter his moves by first taking allot of deep breaths, then plan a well thought-out 'defense-turned-attack' by calling ALL your community's legal resources (allot are FREE) and requesting/receiving help and guidance. Your local Police Agency has a list of temporary shelters that accept women with kids, ... these also usually provide counseling to help re-birth your positive way of thinking and somewhat 'de-program' you from what you've been led to believe by Hubby. ONLY IF YOU ARE READY AND WILLING TO MOVE-ON WITHOUT LOOKING BACK WILL YOU BE SUCCESSFUL. You can and will survive if you make the MENTAL, EMOTIONAL, .. and PHYSICAL committment to live life without him.
However, .... in my experience with many, many family members, friends, and co-workers that made it through the SAME situation: if you are NOT TOTALLY committed to break free and start over without contact with this man (other than court ordered visitation) .... see my first statement in quotes at the top of this reply. If you just can't live without this guy, ... see the statement again. If you think staying together with this man will be the best for the kids, ... see my statement. If you think he will change and come to his senses when he sees how much he has hurt you, ... see the statement. I don't mean to be ... 'mean', ... but the spotlight is on you,... and your kids look to you for their support and survival. Don't let them down. Good luck to you.