You absolutely did the right thing. And have every reason to be concerned. What that woman did to you - and your daughter - was horrible! (to put it mildly).
Her actions speak volumes about her selfishness, deceit and manipulation.
I am so sorry this happened, Mike. I am really glad you are able to be the real responsible "parent" here, looking out for your daughter's best interests.
And please keep us posted and let us know how you are doing.
(ps, I am really sorry to hear your mil is not doing well. Thoughts and prayers your way)