Is divorce the solution now, or should I keep her until things improve, bearing in mind Allah's punishment concerning children, family, or livelihood, should this marriage be terminated by divorce?

Adultery is a major sin, and it is more heinous when committed by a married person than by a single person, and its punishment is more severe in Islam. The wife has the right to seek divorce because of it. Persistence in adultery leads to the collapse of the family and the loss of wife and children. Whoever commits such abominations is exposed to torment: "Whoever does evil will be recompensed for it," and "And let those who oppose His command beware lest a trial strike them or there come upon them a painful punishment." The solution is sincere repentance by abandoning the forbidden, feeling remorse, and resolving not to return to it, in addition to maintaining prayer and increasing acts of obedience. For Allah grants a way out for the righteous and provides for them from where they do not expect, and the wife's heart may soften. Without sincere repentance, do not expect relief, for a person is deprived of good because of his sins.