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I'm Lucy, and I'd be happy to answer your questions today.
The first step with the house is to see what the divorce decree says. Is she supposed to sell the house when she moves out? Is the reason that she got the house because the judge was trying to minimize the impact on the children of the divorce? Judges will frequently allow the parent who has the kids to remain in the house, but she might have to sell the house once she's decided to stop living there. Check to see if she's supposed to sell the house and if so, under what circumstances. He might actually be able to bring a lawsuit to force a sale, although your offer to buy him out may be the best resolution.
As far as child support goes, you have no legal obligation to support your fiancé's children with another man unless you choose to adopt them (he can't decide that you're going to adopt them). There's nothing in the law that would allow him to stop paying child support just because she's now living with you, and she could have him held in contempt of court if he tried.
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