Adopted older Pom and trying to crate train

Question
I adopted a Pomeranian that is about 4 years old.  She is very sweet. She does exibit some separation anxiety issues and follows us around the house a lot, especially if it appears one of us or all of us may be leaving her home alone.  She spent a lot of time alone at her previous home.

The previous owner didn't use a crate. She used puppy pads for her.  I have been told by my friends that it is essential to crate train her if I don't want her going in the house while I'm away.

However, whenever I leave, if only just for an hour or two, she pees in her kennel.  I know she is able to hold it longer than that, as she never pees in the house when we are home; however once in awhile will poop if we're not paying attention.  She also is prone to peeing a LOT if I take her on walks; marking like I would expect a boy dog to do.

She is not spayed but will be the week after Christmas.  

So, should I continue with leaving her in her kennel when we are on errands and when I'm out of the house for work 2x a week, or should I block off an area like the kitchen and see if that is better?  I also have 3 cats which she tends to fuss at when they get too close, but I'm more worried about her than the cats as she's smaller than they are!

Thanks,
Chris

Answer
Chris,
How large is your crate?  Do you leave a blanket or pad in the crate?  If the crate is to large or it has a pad in it then it can be viewed by the dog as just another area and the pad can be the same as a puppy pad.  The crate should be only large enough for the dog to enter and turn around not jump and play around in.  Primarily the dog should be able to lay comfortably in the crate but not stand and move around comfortably.  This size crate will provide the necessary factors for proper crate training.  Once the dog is trained to honor a small crate then you can move to a larger one if you like but with your situation especially the smaller crate is a necessity at the start.
Crate training doesn't mean simply sticking the dog in the crate when you leave.  A dog should first be familiarized with the crate during a rest period such as at night when you are at home.  Help the dog to recognize the crate as its "safe" area or "personal home".  During crate training the dog should be put in the crate at night and in the morning it will need to go potty. Take the dog from the crate and carry it outside to the spot you would like it to potty in and give it about 5 minutes to go.  If the dog goes then praise it and allow it free time in the house with you.  If it doesn't go in the 5 minute time frame return it to the crate for 10 or 15 minutes then repeat the process.  Usually by the 2nd time out it will go right away.  What you need to do is create the "habit" in the dogs mind that it goes potty in that particular spot.  By making the dog recognize the crate as the area where it is safe and relaxed (sleeps)it will view it as its "den" and not soil it. You can reinforce the dogs honor of the crate as its own space by giving the dog chew toys or treats while it is in the crate.  
You are dealing with a learned behavior taught by the previous owners use of the puppy pads.  The dog has been conditioned to go in the house simply because it has been acceptable for the dog to go on the pads, which are in the house.  However in doing this the dog has perceived it only as the ok to go in the house when no one is there not the ok to go when there is a puppy pad present.  This is an example of how people will often teach their dog the wrong behaviors by accident while they think they are dealing with a possible problem.  When a dog is inactive they are capable of going several hours, often 12 or more without having to go potty.  My personal dogs live in my house and in the winter when it gets dark early they will often be in the house for 10, 12 sometimes 14 hours without going potty.  Of course my dogs "ask" to go out when they need to relieve themselves so I don't worry about them soiling the house.  A dogs potty schedule is controlled by habit just as most other behaviors.  So if you develop the habit you desire in the dog then it will gladly accept and follow it forever.  
Her urinating or marking when on walks is common behavior and quite normal for a dog whether spade or not.