My daughter had an affair and is expecting her second child, what should I do?

My daughter had an affair with her aunt's hubby and is now expecting her second child with the same guy. He lives with his wife and visits my daughter whenever he is able to. My own husband despises him, I could careless about him, my daughter doesn't know what she wants. He wants to be with my daughter but is afraid to go through with it because we pressed charges and he is now considered a pedofile. Should we go on as if life is just fine? The wife hates us as a whole family, her sister has even wished abortion on the firstborn and yes they are my husbands sisters. Help... should I help set up house with them or completely stay out of it?