How many dogs are in the house? And who owns the others?
Listen, I'm about 2 days away from homeless, I get tough times. You may need to stay with your in laws, but that doesn't mean that they get to run your life. Your children need to be kept away from the dog. Period. You don't need to make a scene about it, you simply remove them. If the other dog is yours, same rules apply. If it isn't, frankly, it's none of your business.