Living situation post-divorce w/ kids

Long story short, my wife (42f) and I (42m) are in the process of getting divorced; no anger or hatred, it is a very amicable one, splitting everything 50/50. We have a 3 yr old and 8 yr old. We will be selling our house, but staying in the same school district.

I'm trying to decide the living situation for myself and when my kids are with me.

I'm not sure exactly how much $ I'll have saved up post-divorce; depends on how much return, if any, we can get from the house. But it won't be enough yet to buy my own place.

It seems like everyone says the best thing to do is rent for a year or two, which I was considering. But with rent prices and bills, I wouldn't be able to save as much as I'd like and feel like I will be 'stuck' renting for a very long time.

My parents live very close, about 5 miles away, and said that I could move back in with them for a while (year or two). While I don't like the idea of moving back in with my parents, it would by far be the best option financially since it would allow me to save a lot more than if I rented. Also, the kids are already very familiar with the house and I think it could help in that it would be less 'change' for them. Plus, my parents are both old and need help with a lot of things so being there to help them and help around the house and yard would be good for them. However, the space will be a little tight there, especially when I have the kids, and sometimes my mom can be a lot to handle.

I keep debating the pros and cons of renting vs moving back in with my parents. I really would like to have my own place, privacy, etc. But grandparents being around and being able to save $ is very hard to ignore and I think I am leaning that way.

Has anybody been through this dilemma? Has anybody moved back in with their parents? Did it go ok? I was just trying to get some real input from people who have been through this.