Should I hire my spouse to work in my home service business?

Personally, I would only do this if she would be doing something that wouldn't be the day to day operations. I'm sure she will work hard but it becomes challenging when they miss stuff or mess something up. So it really depends on what you want her to do. 

My wife does payroll and that's about it. She used to handle messages with customers, managing the VA, as well as payroll and special projects for HR. What I was finding is this wasn't her baby originally so she didn't have the same drive to get things done. Then all we talked about was the business. Also when things got missed, I didn't feel like I could be as **bleep** her as I would an employee. Ultimately, I think this hurt our productivity. 

The other thing to consider is the diversification in revenue streams. It's nice to have other streams of income. 

My mentor advised me highly against working with a spouse (having done that himself) and said you should do everything possible to avoid that. 

As a wife in the combo, I suggest slowly implementing her into the business. Start by including her in your decision making process. If she shows interest, start splitting off tasks. She doesn't need to quit her job right away. She may like participating in your side of things (a big help in creating a holistic environment for the kids). She might have absolutely no interest. YOU may decide that she is ultimately a great wife, a wonderful mother, but a nightmare to work with professionally. Start slow and small. If she is anything like the average woman, her micromanaging "skills" will take over and she'll have ideas of her own, for better or worse. 

There are tax benefits that come with hiring family members.  Consult your tax advisors of the specifics.In this economy nothing is stable from tariffs to health benefits.  Perhaps, your wife can work part-time in the business until the business ROI exceeds the risk.