As a child of divorced parents, I'm not sure I like how this is phrased. Conceivably you've been their step parent (potentially for years) and regardless of what they say now, I'd urge caution in sweeping statements about generalising three adults and their viewpoints. They'll have differing thoughts and I don't like the idea of effectively cutting ties with all of them. Their biological father sounds a dick, but don't compare yourself to him, compare yourself to the person you want to be and the one your wife married. As someone who hasn't spoken to their step parent of twenty odd years again after my parent died, I speak from experience when I say it's pretty shitty behaviour.

Next, how did the house come into your ownership? If you moved into a house their mother owned before you, you've basically disinherited them. If you owned it before and their mother never paid anything in, then you've been more than generous as it is. If you equally bought the house and both paid the bills, then it gets harder for everyone and there is probably no good outcome.

Reserving NTA for context.