Wife realizes now that she does not like living with my dog
My problem is a bit different from a lot of the other dog-related posts I have read here. I have a loving wife and a well-behaved dog, but she just doesn't like dogs. I have had the dog for 6 years now and had him when we started dating a couple years ago. We got married a year ago, but before that she seemed to like the dog. She never claimed to be a dog lover but never said she disliked them either, so I never anticipated any big issues. After getting married and living together in a house for a few months, she tells me that she now realizes she does not like living with a dog. She explains that she did not know this before as she would only stay over occasionally and have never previously lived with one.
He used to sleep in a crate in my room upstairs, but she didn't even want him upstairs at all. We compromised and I moved him to the guest room upstairs even though it broke my heart, and barred him from entering our room. I also make sure to keep the floor clean because she does not like his hair all over the place, and keep him off the furniture. He does not have any of the behavioral issues that most people in my situation complain about (no accidents/aggression/biting/chewing/barking/etc), and I take care of him 100%. He just likes to lick and occasionally beg when we eat, but I am in the process of training him to stop. She has also complained about him coming near the dining table when we eat, entering the kitchen, and just being near her in general, even though she has no allergies. The problem is, we live in a very small 700 sq ft townhouse so it is a bit hard to keep them separate, and I have explained to her that I can't keep him outside because it gets too cold here.
To her credit, my wife has been generally nice to the dog and has genuinely tried to make things work. However, anytime we fight or she is in a bad mood, she brings up "the dog", and how she doesn't like living with him. Our fights get bad because I get protective of the dog. She thinks that I should be happy that I get to keep him, and when I protest, she says that if I love the dog so much, she can move out. I feel like I'm always walking on eggshells with anything to do with the dog, and am terrified of him doing something she doesn't like. I thought things would get better over time, but her patience/tolerance seems to be decreasing to the point of fighting about him every week now. My wife loves me and I know she won't make me give up the dog right now, but that might change if/when we have a kid - she has already said she doesn't want the dog near the baby. I really want to make this work, but if things will get worse when we have a family, maybe I need to consider that being together might not be the best idea?
Sorry for the long post - I just wanted to be as detailed as possible.
My question is - has anyone else been in a similar situation too? Does anyone have any advice/tips on how to handle this?
Thanks for reading and giving your advice!