I think both are bad. But I believe divorce is worse since I do believe in more traditional teachings.
Growing up in a household where the parents are constantly fighting is not a good thing at all. But, without one parent would be bad as there is no balance. I hope you can work the problem out, even for the kids sake, learn to get along and live in peace. Show the children you will stay together til death. And don't be a part of a growing statistic that ends in divorce.
I am no expert, nor do I know why you fight. But maybe a temporary separation and counseling. Talking to each other, trying your best to stick to the commitment you made to each other that day. And, hopefully you will make it through. Love hopefully will grow between you as family.
And, as I'm Christian, I feel obliged to say Trust in the Lord and learn about His word.
Best wishes and hope you will get through without divorce..