From the photos and what you've described I don't think the overhang should be a big issue. It would be extending out three inches into the family room, about the size of the palm of your hand (w/o fingers even). You would probably want a foot or two of clearance for chairs/stools or 2.5-3 feet for walking between the bar and any furniture anyway, you could probably eat into that for laying out furniture without too much difficulty. As far as the look of it goes, it is a very slight difference well away from your doorway so it should be difficult for someone to notice. You might want to go over with some cardboard and position a fake bar along the edge so you can see how it would look. If you decide to go with the overhang and then don't like the intrusion you could probably obscure the protrusion further by putting tall potted plants (or something else tall) near the door edges to make their position fuzzier and have them look even with the bar.

@Jennifer K Theres actually a large closet on the other side of that wet bar in the hallway to the left of the wet bar, I thought about closing off the wall and expanding the closet. I dont need space for a desk area at this point as the home has two butlers pantries, one of which I was going to turn into a little desk nook and a large room for a home office. My kids will have a desk setup in their bonus room as well. I thought about a reading nook but the kids want a treehouse in the backyard instead. My reasoning for the drywall was it’s the least expensive option and I think I need the wall space for hanging photos. I want to take my photo and photoshop out the wet bar and see how it’ll look!

When the sofa faces the window, the chaise completely blocks the fireplace and looks like a fire hazard. Since you're open to some construction, you may want to consider removing the mantle, adding brick up to the ceiling, then mounting the TV lower than where the mantle is now so it's more comfortable to watch when the sofa is facing the fireplace. If you remove the radiator in the dining table area, will you also be able to remove the 27" and 24" wide wall bump outs on each side? If you can, you'll gain valuable space and may be able to use the table and chairs you have now.

Hi, thanks for your comments. Here's a picture for the actual space. As you can see the window could be at the same height as the planned counter. Right now the refrigerator is in a nook right across from the sink, in between a pantry closet and a bathroom (yes I know kind of odd, but is the way the previous owner had it. The idea is to move the fridge right where the stove is now (next to the wall oven), and move the stove to the space in between the windows), and have the peninsula start right where you see the beginning of the window, 36" into it (24 cabinet+12 overhang). See here for details: re: DW and fridge doors issue. Noted. Perhaps we could swap the wall oven and fridge. not sure. Thanks again for the feedback! Carlos.