In your case I think the big thing is your DD. Maybe some time with you at home with space is what she needs to help her deal with how her father is treating her. IF he has been paying the bill for education till now then he is responsible for last term as she was still with him then and that is one of the reasons why he got the settlement, for having the kids.
Once things calm down just be truthful with your DD and let her know money in your house is not like it was with dad. Get her involved at looking at local schools you can afford so she has a choice, she might not like it to start with but in time she will come round in time.
We are living ina time when money is really important and getting into debt over a matter like this could make life very hard for you later, particularly with other kids.

