V.K.
I am going to have vote for counselling as well. That is the only way all of your children are going to straighten out. But i'll tell you it is in no way going to happen right away, nor is it going to happen anytime soon. Therapy is usually a pretty long process and you have to remember that though you chose to remarry your kids didn't make that decision.
That aside, though you are the one who chose this, you need to be firm with your children that the two of you as spouses are partners. When your children are disrespectful to him they should get the exact same punishment as if they did it to you. They don't have to like him, but they NEED to respect him. And, of course, the same goes for his daughter. If you guys don't support each other than who will?
I think that splitting up your money would not help matters. If the point is that he doesn't feel that they respect him, then they should not be receiving allowance, cars, games, etc. whatever they're into. But you need to step up to the plate and take those things away and take the pressure off him from always being "the bad guy"