I don’t think that’s the right question. If you answer the first question “yes,” you immediately want to know the answer to the second. That means you have a conflict between personal and religous belief systems. The problem is, you wanted to receive a sacrament, a rite that is solely available within the context of the Roman Catholic Church. In order to do this, you have to play by their rules. In order to do that, you had to lie, which is to break their rules all over again, but, perhaps more importantly, you had to break your own, too. I take it that you would prefer, in any given situation, not to lie unless you felt it was a necessary means to a more important end.
That’s always a difficult choice, but most of us have to make it at some point in our lives. Your wife shares responsibility; she was living in sin, too. And it sounds like she’s the one who is more bound by Catholicism that you. Having grown up Catholic, I think it would have been better if you had been clear with a priest (maybe not that particular one) to find out what your options were. That’s no longer an issue. Here’s the thing: I don’t see why you can’t confess–even to another priest, outside that particular parish–and receive absolution. This would put you right under the Church’s system, and, with hope, your own accountability system. I don’t think the marriage would be annulled; you might be saying “Hail Mary’s” for some time to come, though.
But maybe that’s not what you’re asking. If you’re asking was it wrong to “live in sin” by your own personal code of responsibility, only you can decide that, of course. Personally, I think not living with the one you plan to marry before you marry her/him is risky. I’ve known several people who were certain their partner was “the one,” only to find out how wrong they were as soon as they started to live together. This surprises me, but I would definitely want to live with my partner before taking the plunge, even after we “knew” eachother. Things are different not only when you start to make love, but share the same roof, pay bills together, marry your bank accounts, etc. It represents an enormous jump in intensity and maturity. It can be difficult, very difficult, and all kinds of things can come up, especially when it’s all hinging on one, big, declaritive ceremony. Of course, it can be bliss, too . But personally, I’d need a little experience before taking the plunge.
That being said, if you’re a Catholic, you have to play by Catholic rules. And it sounds like you are, so go talk to a priest not so close to your family, and see what he says. I know of a couple that was in your position, and they were able to consult with a priest and work things out, but I’m not sure what that entailed. Good luck.