Filed false cases; Threatening to file additional false case(s)

I entered wedlock with a girl whom I knew for 2 months on 18th Oct 2010. The marriage was held as arranged marriage even though her family had so many objections. They left the decision with us as we decided to get married. Things were pretty usual till June 2012, the month she was taken to her maternal home for delivery (as part of rituals). One daughter was gifted on Aug 2012 and she was taken back to my home on Nov 2012. I have seen clear indication of a change of behaviour since then. Her mother didnt accepted me till date as her son in law; though this doesnt bothered me. But after she was taken to my home after delivery I felt a sudden change in her behavior. This came from absolutely no reason at all. By the end of Nov 2012, she abused my mom and threatened to leave the home. I was in dilemma and couldnt respond to it during that time. By mid Dec 2012 her brother came to my home and took her and my kid back to her maternal home. I occassionally went to her home as I was very much attached to my kid. But over course of time, she used to leave the home without informing me and wont pick up phone calls. Her intention was to take my kid away from me. I had to stop visiting her house over this. This caused a deep mental depression for me as well. Also when I visited her home to see my child, her mom and brother used to abuse my parents. Anyways, I didnt care much about that bcos my kid is my prime concern. I tried several measures to bring her back to my home. None of them worked out. She was held in a firm stinct that I should move out of my own home and have a seperate residence. I couldnt do it as I am the one and the only son and my parents are old, weak & have health issues. So, I stopped visiting her and purposefully didnt tried to contact her. Thought that she would realize the mistakes and would come back one day. On Dec 2014 she send me a MC for child. It was send by an advocate who later claimed to be a relative of hers. This came to be a utter surprise for me. On June 2015, the case was closed and verdict came to give my child an amount of 3500 rs per month. I wholeheartedly accepted this as this is for the welfare of my child. On Nov 2015 my mom was admitted to hospital and she had to undergo a surgery (removed her left breast) and also have to undergo a series of chemotherapy. Knowing this weak condition of my parents and mental depression of mine she filed another false case (which included filthy things) for recoverey of money and gold. Her money and gold and other articles were taken by her when she went to her back in Dec 2012. This along with my mom's condition put me under severe mental depression. My lawyer advised me to file a divorce as there is no point in continuing this relationship. In Jan 2016 i filed a divorce with mental cruelty and dessertation as main points. In April 2016 this case was send for mediation. During mediation process, her lawyer (the relative !) called me abuses (really filthy) in front of her and mediator. He threatened me to file false cases, and also threatens to end up my life and future. Mediator who had limited control over this advised me to go for counselling. She dont want divorce, but need a seperate residence with me which at present I cant event think about it. She and her lawyer then demanded 25 Lakhs for a mutual petition. She demanded this amount with full knowledge that I dont have such a huge amount with me or even I could afford that amount in the near future. Counselling sessions are planned next week, but I am 100% sure that this wont workout. She and her lawyer is really cunning and I & my parents are really frustrated about this. I dont want to spend the rest of my life with such a lady who has already filed false cases and threatens to file more. Please advice on what to do. Thanks in advance, Arun