Welcome to the forum. I'll try to help.
The chance you caught herpes is very low. First, the episode of unprotected vaginal sex carried a small risk, but quite low. For unprotected vaginal sex, the risk of transmission -- even if she wasn't taking Valtrex -- probably is in the range of once for every 1,000 exposures. Taking Valtrex reduces that by at least half, probably more. So now we're down to 1 chance in a few thousand. (In monogamous couples in which one person has genital HSV-2, not taking Valtrex, and having regular unprotected sex, transmission occurs in only about 1 in 20 couples every year -- showing how low the risk is for each individual sexual exposore.)
As for your oral exposure to her genital area: oral HSV-2 infections are quite uncommon, even in people who regularly perform oral sex on their HSV-2 infected partners. The mouth appears to not be highly susceptible to HSV-2. I don't know what to make of the "irritated spot" or "red dots" but it doesn't sound like herpes.
HSV-2 transmission in households simply does not occur (assuming no sex between the household members). Obviously if you develop symptoms that suggest herpes, either oral or genital, common sense says that you avoid direct contact of the infected body parts with your kids. And HSV is not transmitted by towels, eating utensils, by doorknobs, etc. There is no signficant risk here.
Most people would agree your partner should have informed you of her genital herpes before you had sex with her, but at least she did so afterward -- and she probably knows the transmission risk was low. You should not necessarily cut off your relationship with this partner, although that depends on whether or not it has promise for romance or commitment. There was a discussion about this in a recent thread; see
http://www.medhelp.org/posts/show/794650
Bottom line: Be on the lookout for either penile or oral blisters/sores, and if in doubt see a health care provider. But it is unlikely you were infected. Don't worry about your kids. And take an understanding approach with your partner, who might be as upset about this as you are.
I hope this helps. Best wishes-- HHH, MD