Praise be to Allah.
Can husband and wife Pray Together?
As the mosque is far away, it is permissible for you to pray in your home, and to lead your family in prayer. Do as the Prophet (peace and blessings of Allaah be upon him) did, as described in the hadهth narrated by Anas (may Allah be pleased with him) and reported by al-Bukhari and Muslim: “He said to them, ‘Get up and let him lead you in prayer.’ The Prophet (peace and blessings of Allah be upon him) stood up, and the orphan and I formed a row behind him, and the old woman stood behind us. The Prophet (peace and blessings of Allah be upon him) led us in a two-rak’ah prayer, then he left.”
Where should children stand when praying with their father at home?
Make your two children stand behind you in one row, and their mother can stand behind them. If their mother is not praying because of menstruation etc., then lead the two children in prayer, with them standing behind you in one row.
Can children say the iqamah?
It is OK if a boy who has reached the age of discretion recites the Iqamah. The age of discretion is usually seven years or above. He can recite the Iqamah so long as he understands the basic essentials of the prayer.
And Allah knows best.