Re: Liveaboard families w/small children, under 37'?
We have been living aboard with 3 young children for 4 years now. Ours wasn't a 37' but it was a coastal cruising 40 with a quarter berth layout. When the kids are young, under 7, any boat will work. Now that ours are getting older we had to sell and get bigger. But we faired well enough. Sailed a few thousand around Fl and the Bahamas.
When it was time to make a change I offered the land lubber rat race to my wife. She wouldn't hear of it but said that a bigger boat would be nice. So I got her a 50 with 3 staterooms. So far it has been great. Once the kids hit preteen status we'll move ashore temporarily in our hometown. But from my experience, if you want to explore, any boat over 50' will severely limit your travels in said cruising grounds.
A 37 footer should do fine with kids.