How to handle this situation? Part 2

Well, I wouldn't have a conversation over the phone about what happened unless it will be a long time before they return home. I definitely think getting an apartment of your own is a good idea. That may be what you should start your conversation with your mother in law with. Tell her that you love everyone and feel that all of you living together is having a negative impact on the relationships in the family. You never wanted to have bad relationships or hurt anyone's feelings or make anyone angry, and say you think you and your husband should move out so that the family can still salvage what is left of the relationships you have. I would apologize for anything that you may have said or done that has caused any hurt feelings, and stay humble about it. You won't get anywhere if you keep pointing fingers the whole time, and saying bad things. Even if you haven't done anything to be rude or mean, if you start the he said this and she said that, everything will just get worse. I would just start trying to wave the peace flag now before it gets any worse. If you have to apologize for the situation and no one else steps up to accept blame, then so be it. You need to be the adult if no one else will. Besides if there are children living in the house, it can't be good for them to be living in a war zone. In the future, when your niece is doing something like running in the house, you should let the parents know, and you should not scold her. It is over the line, and if it were your daughter you would take it personal if you did not like the tone of voice spoken whether she was doing something wrong or not. You have to be careful when you scold someone's child. It is like animal instinct. If a momma bear saw someone going after her baby bear, she would protect the baby even if the baby were wrong. I hope that your family gets past this. It is hard to have that many families under one roof. You are bound to have arguements and disagreements, but you have to learn how to argue without it turning into a war and learn how to disagree without causing so much conflict and fighting. Compromises and apologies are the best way to get through many arguments and fights. You just have to stop trying to be right eventually, and try to figure out how to be the peacemaker.