Here is the quote from DV2012 instructions:
"10. MAY A HUSBAND AND A WIFE EACH SUBMIT A SEPARATE ENTRY?
Yes, a husband and a wife may each submit one entry if each meets the eligibility requirements. If either is selected, the other is entitled to derivative status."
Instructions can be found at dvlottery.state.gov that is the same place where application for DV2012 is located.
As for your children here is another quote:
"20. IS THERE A MINIMUM AGE FOR APPLICANTS TO APPLY FOR THE E-DV PROGRAM?
There is no minimum age to apply for the program, but the requirement of a high school education or work experience for each principal applicant at the time of application will effectively disqualify most persons who are under age 18."
So I suggest read the instructions and plan accordingly.
