Warren, do the right thing mate. The woman you love is living with her children in a hostel, which are by rights, total shitholes.
If it's not going to ruin you both, then you should move her in. You will NEVER have a responsability for her children, thats the fathers sole responsability. She will not be allowed to leave you in 6 months with half of everything. But right now, she's living in a shithole, and you can get her out of it.
Ignore all these fuckers giving you the doom and gloom, for all you know, she moves in and you both have a great life together. If you love her, and trust her, then get her out of her hell.
Go on mate. BE the hero.