Keep the home after separation?

We've been doing the Dave Ramsey program for 7 years and currently we are in BS6.

We have 3 teenagers, two of which have college funded. We have a house worth roughly 500K on which we owe 185K. There are 7 years left on that @2.7%.

In am in my early 40s and retirement is on track I think, I have around 500K in there. My spouse has around 350K in hers.

Unfortunately things between us aren't so good lately and we are likely headed to separate. As it looks today, I would likely need to cash her out of the home and we would split custody. I like the house and she doesn't... it's an older home with a few quirks but I know it well.

I have roughly 20K in my efund, no debt.. the big question is, can I afford to carry the house by myself?

I would need to give her roughly 160K, half of the equity.. as well as half of the furniture.

This forces me to carry roughly 340K at 6%.. on top of all the utilities, taxes etc. Carrying the house puts me at roughly 50% of take home on housing alone. Maybe a bit less if I extended the mortgage to 25 years.

On the other hand, it gives me a bit of stability and a cleaner break since she could potentially move out right away without needing to find a seller. I don't think it's healthy to cohabitate in a dead relationship for months simply to save 10K.

I like the house and the location, not that this moves the needle much on the math..

My basic plan was to just go into storm mode and carry the house for a year or two. I may end up meeting someone else, or using my week alone to up my income.. or selling and downsizing at some point.

Is it smart to contemplate keeping it, or should I just let the house go and rent ?