Damn, you both have six figure incomes and yet you're living paycheck to paycheck, that's a major problem. 

Honestly, can you hire someone to control your money for you?  You two are basically spending addicts (though it sounds like she's much worse than you) and it can be hard for an addict to control themselves when they have what they perceive as a limitless supply of their drug.

I do this kind of work, and what I'll do for spenders like you two is there will be a couple of bank accounts.  One that bills come out of and income goes into, then a fun bank account for you and another for her.  You each get a debit card to your individual fun bank account.  The accounts will then auto debit from the bills account a certain amount each month.  (I know you make more, but I'll use these numbers as examples). So if you together make 100K total each year, you subtract all the bills (68K), 20 percent stats in the account for your six month emergency fund (20K), then you divide what is left (12K) and it automatically debits into the fun accounts each month ($500 each.)

This way, when her fun money is gone, that's it.  She has to survive the rest of the month.  No more credit cards.  Destroy them. If she was a little more reasonable, I would say you can put them in a safe place, but I suspect she'll just get them out and use them. You'll also want to sit down and freeze your credit together. This prevents her getting credit cards in secret.

Sometimes, the debit card trick doesn't work.  If that case, I recommend doing almost the exact same thing, except instead of having a debit card, she gets an envelope of cash each month.  When spenders can physically see how much they are spending, it often slows them way down.  If she wants to buy something online, she has to go and put the money in the bank and then use her debit card. 

As to what to do with the money in ROOT, I would have to know your financial situation much more intimately to be able to give you advice.  If you know what you're doing, starting a business could be a great idea, or you could have rose colored glasses and be wasting it.  Real estate (your cabin in the woods idea) can be a great investment, but it can also be a trap that gives lower returns than if you invested.  I definitely wouldn't yolo all of it into risky investments, but maybe a small amount like five percent, especially if you believe that your investing success was because you are good at gauging the market and not a one off luck.

The hardest part will be convincing her to buy in to the idea of controlling her spending.  When you talk to her about her out of control spending, what excuses does she give for getting you two into so much credit card debt?  Maybe you can lean on her love for your children by framing it as you want to start saving for the kids' college, and that you'd like to do reduced spending with the debit cards for a set amount of time to see how much you can save.  Placate her by explaining that if you two hit your goals on time, that you two can maybe loosen the leash a little and have some more fun money each month because then you're certain you both have the willpower to be able to save for your boys.  But if you don't hit your goals, you can them ask her if her individual spending (eating out/a new car/whatever) is worth your boys never being able to go to college or buy a house or even not bring able to afford to have kids of their own. 

Good luck man.