Congratulations on your new home. I think you have been very sensible to live in it for a year before starting your decorating, it has given you time to consider the lighting and aspect of each room in all seasons as well as time to evaluate how you want to live in your home and exactly what you need. The lounge does look very big and bulky and will definitely dominate the room, so I would keep to the lighter colour. Don't worry about the kids and dirt - as Kookykaren said, leather cleans easily - sharp objects and textas are your bigger worry regardless of what colour you choose. Laying newspaper on the floor to the size of the lounge is another way of checking how it will look as it gives you a better indication of bulk than tape. I would keep your ottoman simple (one with storage is an excellent idea with the children), just a tone on tone fabric or a pattern using the colours in the rug on the floor of the photo of the lounge. I don't think you have room for too large an ottoman but I would have a square one made the same height as the lounge so when just you and DH are watching TV you can push it against the other end of the lounge and both have a chaise. You can then bring some colour with art work or some patterned cushions on the lounges.

Other colours that work with red are turquoise, apricot, peach, any blues, yellow, even some pinks and greens. (Look to gardens for inspiration, or Old Masters paintings). I'd find patterns with combinations of those, or Vys colours, in a rug, and chairs or cushions.

Care to share a photo of your space so far so we have a better idea of your colour scheme to invite more suggestions? :)

To be blunt -- the room isn't really big enough ! So you have to sort out priorities , and space . You have a dining table , and a computer desk . Can you get rid of the computer desk , by having your computer tower mounted behind the couch or similar , and a wireless keyboard and mouse that you can use on the dining table ? Mount the monitor on a wall , or if you don't need in depth graphics , I understand you can use your TV ( I've heard something about the 'refresh rate' is less on a TV ? ) . Maybe even have a monitor but also the option of using your TV ? Could you use a 'breakfast bar' , probably where the computer desk is now , I know its not sociable all staring at a wall , but it would/could serve as a brakfast bar and computer workstation . Could you get rid of the dining table and chairs , and have a large coffee table , or 2 smaller ones , and eat 'casually' ( my polite way of saying eat sitting on the couch ) ? Even mounting the TV on the wall will let you get rid of the cabinet , but I gather you have gaming consoles in there ? And the present arrangement with the pot plants uses some space -- maybe some shelves with them on will still retain the plants but free up floor space ? Just some thoughts off the top of my head .