Tahva, I don't believe in the transmigration of souls, at least in the sense that humans assume animal form. I have known animals who are so devoted and intelligent, that I think they might come back as human. I don't necessarily think that is a promotion for them.
Pathfinder, that is wonderful that your children found you. I sometimes wonder if all time is concurrent, and the idea that time moves forward is a convention for the human mind. When I visit my hometown, I get a sense of my young self, visiting my old "haunts", and of loved people, long dead. My husband's family left Kilkenny around 1850. You may very well be related.
I don't think we take on a life as a punishment. I think of it more as a learning opportunity. My current life is a strange continuation of the one I lived previously - even to names, and places. My life ended when I was 36, in a flood, so maybe I wanted to pick up the thread again. I have read that if you hate a certain group of people, or a country, you may come back as a member of that race or nationality.
Tabytha, I think there are different realms in the in-between. I am basing that on the accounts of people who have near death and out of body experiences. In the Bible, Jesus says, "In my Father's house there are many mansions". I think he was aware, and trying to teach his followers.