Gin,
I am glad you weren't hurt, and that the only thing that happened in front of your children is some lady calling you names. What people do, and how they act, around consenting adults is one thing, but when it involves children, or around children, I have zero tolerance. This guy needs some serious help before something much worse happens.
It will be difficult for you being around his family, but stick to your guns. You did not do anything wrong, and by stopping him now, you may be saving everybody from some very serious problems in the future. Do not back down, and by all means, testify against him. That will also not be easy, but think about your kids...that will give you all the strength you need. Also, know that everyone here supports you and will be praying for you.
........Laurie