M.L.
You really do have to go cold-turkey, and do it before the baby comes. You need to establish a bedtime routine, which could still mean reading a story in your bed, but then they will have to go to their own room for bed. Their bedtime should definitely be moved up, but do so incrementally. There will be a lot of crying and they will probably try to come into your bed throughout the night. The first time you tell them that they need to sleep in their own beds, then each time after you just take them back without saying anything. It may take several weeks and you need to be consistent. They will try to wear you down and there will be times when it seems easier to just give in - DON'T! In the long -run it will be better for everyone. OH, and you need to make sure that your husband is 100% supportive and willing to follow through when you're not there. Assuming you will want the baby to learn to sleep alone, you should start much earlier with #3. While the closeness and convenience of co-sleeping is lovely, your kids need to learn to separate from you and you & your husband need to take back your bed!