The solicitor will advise your properly and will not 'string it out' unnecessarily.
Your wife is correct about repaying the monies.
"More commonly, the Legal Services recovers the money which it spends on a case from the property which is recovered by a successful legally aided client. This is particularly applicable in matrimonial cases. It is true that a certain amount (currently �3,000) is exempt and also that payment can, and very often is, deferred by the Legal Services placing a charge on the property, such as a house, but in those cases legal aid is not "free".
http://www.terry.co.uk/legaid.html