If she is stupid enough to

try and bring lawsuit we plan on doing several countersuits ourself against both her and dmil. I know saying against dmil sounds harsh, but we would have to do that to prove that dmil has no right to ask dh to give up that small amount when she owes us so much money. We’d never push to collect it from her, but we would need it to go forward with the criminal charges against sil.
We’d also move to have sil removed as representative payee and our nieces as poa as well as to have dmil removed from their home (we will be working on this no matter what). Dh has already started on the groundwork to get this done.
It is also our plan to file numerous criminal charges against both the sil and her daughter.
We hate that it will come to this. We simply cannot understand what sil thinks she’s doing and while she thinks it is ok to treat her mother and siblings this way.