Dear XXXXXXXXXXX - This would depend on who dies first or you die at the same time. Anytime you ask a hypothetical question it raises more questions but I will attempt to give you an overview of your situation.
First, I always recommend having a last will and testament. If you have that then you won't have any question as to what will happen to your estate since you will control your own estate bequests. If you choose to allow fate to determine the distribution of your assets then they will pass pursuant to the intestate succession laws meaning if he would die and you would survive you would get approximately half and his one child would get half.
If you die first then he would likely get about 1/3 and your 2 children the other 2/3. This varies by state but it is approximately that type of division. If you die at the same time your children would get your assets and his would get his.
As you can see the easiest way to resolve any questions is to get a will prepared for both of you.
David Kennett - JD - Attorney at Law
Attorney
25 years practicing attorney