Just my two cents here. I'm not that familiar with your family situation and thus am not comfortable giving too much specific advice.
Think about your family first, you second. Anything else should just be an afterthought. Yes, how much money you make affects you and your family, but do not try to fool yourself into thinking that more money at the expense of time with family will EVER make you happy... at least for long.
How long before you need to make a decision? If you can wait it out for that year, try to find another job locally. If you find one, take the severance package. If you don't find one and don't have extreme confidence in your ability to find one quickly by that time's up, consider moving. If you need to make that decision now, that's a toughie.