Should I spend the $1600 to fix an oil leak?

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small engine oil leak. 127K miles. Told it was the lower block seal needs to be replaced. Engine has to come out. Around $1600 job. I have low oil consumption have to put in 1 to 1 1/2 quarts between oil changes 3000-4500 miles. It is in shop now having a new re-build transmission put in costing me $3000. My husband about chocked when I told him this... My husband made it quit clear I had to drive this car for another 3-5 years. The transmission problem dealer advised me 6 years ago at 78k miles; but no symptoms and I didn't want to spend the $3500 they wanted to charge me; so I just had the system flushed they didn't find any metal shaving. I started having issues 3 months ago (the torque converter seal gone intermittingly slipping out of overdrive. Running at 2000rpms at 70mph jumping to 2800 rpms; I would let off the gas to bring down the rpms and slowing accelerate back to 70mph) The car needs a paint job too. I didn't want to buy another car; I would have to down size and really don't have the money for a monthly car payment for at least another year! I bought this car 9 years ago from my mother in law estate after her passing it had only 56k little old lady miles on it. I can't afford to replace the same style of car. Is it worth to keep spending money???