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False. Loans from family members are often "soft loans". Does he have paperwork to support these "loans"? Has there been a regular schedule of payment history already? Would his family sue him if he were not to repay these "loans"? If the answer to any/all of these is "no" then you''ll probably find that the loans will be considered his problem, not yours. Certainly a court would never make 3 children homeless to enable a soft loan to be repaid.
our home would have to be sold so my husband can pay back the money he was leant by family members to buy the house
This makes no difference whatsoever. But you should register your home rights with the land registry (form HR1).
the house is in his name only
False. DO NOT move out. Tell him that if he wants to separate, he is welcome to move out. Neither of you are obliged to move out, and if you do, it may disadvantage you financially, so once again, DO NOT move out.
he has also told me that if we temporarily seperate i would have to move out with the three children