Back at it with the mother in law

My mother in law was on the phone wraith her daughter while she was at my house. She was living with us at the time. Her daughter had her phone on speaker and I could hear them talking. I tried to ignore it but it was about me!!!!! She said my husband looks at me through rose colored glasses. That I’m lazy and will use him up. I’ve tried talking to her before but it blew up in my face. How should I go about settling things with her? Should I give up and remove them from our lives? My husband is okay with that but I don’t want to give him the ultimatum. I know he loves his family, but they put both of us down. They want to be around our kids when we have some, I can only assume that because she asked when we’re having kids but I don’t want them to hear her say unkind things about me or anyone! Shutting them out is my last resort. Is there anything I can do?