Welcome, KL9090!

I would like to join
bluek9 in welcoming you to the discussion forums. We are so glad you're here, although we're sorry for the circumstance(s) that brought you to our shores. Yes, this is a safe harbor. So, feel free to drop your anchor and be supported. That's what we do here.
Thank you for sharing with us what you have thus far:
We told them directly and setting strict boundaries that we will live our lives as we chose, they do not get a say and if they continue with abusive behaviors - verbal and emotionally we will report them to the authorities.
Wow... .I am so sorry for what you and your husband are going through. This is a toughie! I am glad that you know about setting boundaries already. This is good, and a healthy step forward for you. I take it that your MIL and FIL are not respecting your boundaries. Am I understanding you correctly? If so, then the goal is to maintain those boundaries and to create additional ones, if necessary. Also, pulling back from the fray can also help quite a bit, as in, depersonalizing their maddening behavior as much as possible, because... .it's not about you.
my spouse has a hard time because he is so hurt to the point he does not want any contact with his parents any more... .
This is quite understandable. I am so sorry for that. Are you able to support him in this?
I believe you will be greatly comforted by the support here and the fact that we really understand what you are going through. We've all been there to varying degrees. Take care of yourself. We will look out for future posts from you.
Keep writing, keep processing, keep learning!
-Speck