Hi Jason, Just a few thoughts for your Clem and Lilly; You have a possible marriage date of 1886; this can't be if Lily is 22 in 1910, and 33 in 1920.
Did you see them in 1910: in the index he is shown as "Ham" Nicely, age 26, married 7 years, b. Ind., parents born US. Lily age 22, 4 children born, 4 children alive, b. KY, and parents born KY. Charles A. age 6 Iola M age 4 Delbert L age 3 Reba B age 1. Census was taken on 20 April in White River, Winchester City, Randolph Co., IND.
The only possibility I see for Clem in 1900: Clem Nicely, age 17, b. Aug. 1882 Ind. (at Indiana Reform School for Boys) Hendricks, Ind. page 164 of the census.
If at all possible, check probate records for Grant Co. and Winchester County for divorce records for Clem and Lillie.
As for the birth record you found, there may have been a mistake in transcription, or recording the birth year, as you can see in 1910 the ages of the children.
With Clem out of the home, I'm sure Lily had to make some difficult choices, that there are some of the children in an orphanage in 1920. How sad for her family.
In Bexar Texas, in 1920 is a Robert L. Nicely, soldier, age 33 b. Ohio. Seemed remote, but can't find Clem anywhere in 1920 trying all my resources.
So sorry you're having such a difficult time finding your ancestors, but hang in there.
Email me and I'll send the images of 1910 and 1920. I haven't tried those spellings for Nicely yet, but will; and I'll download the other images for you and send by email.
I understand your sister or cousin is in Kalamazoo, MI? She can go to Heritage Quest online, at MEL, use her drivers license #, and access all the census images available there.
Oh, and by the way. Our cousin, Dennis Knicely, in California says that there is a possiblilty of Native American blood in the Nicely/Knisley/Knicely line. A marriage in the late 1700's. He wrote extensively about that possiblilty. See if you can find his posts here at this forum.