With my husband it's like he can't utter a single sentence without throwing some 4-letter word in there, and the minute he gets irritated with any of us he starts hurling them at us. I don't think I'm in the wrong here. Am I?
No, you're not in wrong; he is.
And if you think not, any suggestions for tactics that may help me convince him that this is harmful behavior?
Therapy, if he is ever willing. But my guess would be that he is not willing now and will likely not becoming willing due to any magical things you can say or do. This is very disturbing and harmful behavior on his part and will likely escalate in the future to something beyond verbal abuse.
Also, what else should I be doing now to protect my children in the event of divorce. BTW, it would definitely be a financial hardship for me to support the kids on my salary alone (in this area), but I do make more money than him and could definitely support the kids and myself should I leave him (although footing the daycare/preschool bill and mortgage or rent would be pretty difficult).
I don't know what steps you can take to protect your children in the event of a divorce, but raising them with someone who is so ugly is going to harm them far more than trying to minimize his ability to abuse them (divorcing him). And he IS abusing them already. Try to cut your losses sooner rather than later.