I'm so sorry to read of your problems. I hope you will choose to continue to quilt. It may take some adjustment with smaller space. Take advantage of quilt shops that encourage you to bring in your machine and quilt at their large tables when they don't have classes in session. We have spent several weeks in a 19' travel trailer, and I find that I am able to set up my sewing machine at the table and do the piecing quite nicely. When I need to press or cut, I set the machine on the floor and set up my iron and small cutting/pressing board. I can't do large projects, but that's when the quilt store would come in handy.
Prayers for you and DH during these trying times!