If the Passat is coming up for eight years old, it won't be worth much in the market, so if it's going well why not keep it until it goes expensively wrong, or your family becomes six, whichever is the sooner!
If no. 6 is imminent, then maybe look for a people carrier such as a Toyota Verso or Mazda 5, or a big Kia if you want something large and cheap. Don't go for a used diesel unless your mileage is very high: many diesels are prone to expensive failure as they get older.
Either way you should be able to get away with keeping the Z4 for when you're driving alone.
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