Apply to Columbia ED, Chicago, NYU, Cornell, Yale and Wisconsin. Yale is actually a better bet than Duke, Darden, Michigan in terms of finance (it's closer to NYC, and has stronger historical ties to Wall Street) and your chances at Yale are roughly the same as it would be for Duke/Darden/Michigan/NYU/Cornell.
As for your career goals, you're probably better off talking about banking/research than going straight into IM - especially when you're competing against your fellow MBAs for those IM jobs - and most of them will have pre-MBA finance experience.
As for kids, roughly 1/3rd to 1/2 of the married folks in b-school have children (don't quote me on that - it's just based on anecdotal feedback and experience). Adcoms don't really have an opinion on it - it's your life, and they aren't in a position to judge you as a parent or how you balance kids and career. As a parent, no matter which b-school you end up, there will be a very supportive network for you and your wife and kids - in fact, it's been said that the partners end up becoming more tight knit than the students themselves because they end up babysitting each other's kids and spending a lot of time with each other. So I wouldn't worry about it - b-schools are very good at making sure that your wife and kids are an integral part of the experience.