While parents may sometimes cause issues in the married life of their children, the solution is not to live separately or to marry only after their death. You need to advise both your mother and your wife to live together peacefully. I am surprised that no one is concerned about your children and the deleterious effect this issue will be having on their development. For their sake at least all of you should compromise and live together happily.
PS @HK_Jain - I am married with two kids :-).
