I think so. In fact, I have used this technique before. I read about this, but can't remember where. Sheesh, I really need to write down when I read something, where I read it. Anyway.
Decide here and now that to be a really great writer you must become a really great listener. Listen to conversations between your kids. Write down only sentences that one of the children say. Then look at the words. Dismiss character and situation. Just look at the words you jotted down. Do you see hints now? Hints at what the dialogue can become? For instance, say one of the lines you wrote down reads like this. Where are they at? Where. Hmmm, all kinds of interesting possibilities. Where. What if a nervous neighbor shouted that word to you over the phone? Or they hollered that word on a dark side road? Where. It's leading me somewhere. To some place.
Forget that your child ever said that sentence. Isolate the word. Then take the word and write it down. Tape it close to your computer. Say it over and over. Where, where, where. Write the word on an index card. Turn the card over and write down your first thought. Now grab another card and write down another thought. Work as fast as you can. You'll be surprised at what you'll see. :)