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Since good jobs are not lying around waiting for you, I'd say the living in the middle is your current optimal solution, assuming you can both afford the hour long commute. If that is not an option, then money talks - who makes more money and who is in a more secure position, gets to stay and the other one gets to look for a new job. Sorry, but I'm practical like that. Oh yeah, don't quit until you have a secure position and a signed contract for it.
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