Family reunion case and settlement of dispute

Scenario:

My wife has gone to her father's home 1.9 years ago (within the UAE) & now she has filed a case that I should provide her & our daughter with a separate home & cover up other living expenses which I can't afford & this can be proved via financial statements as I am under loan.

I am living with my parents (4-bed villa) and we are 4 people living here. She had a separate room, bathroom; all necessities of life are covered here in my father's home.

She initiated the case at family reunion council & I went there & it didn't work. The reason she states "doesn't want to live with my parents at the union council".

In this period of 1.9 years, I myself & many other relatives have tried to sort out the matter but no success. On a number of occasions, I have asked her to come back. Proofs available (Whatsapp messages).

My question now is should I open a case of home return on her or defend the case opened by her, which is better?

Or if there is some other suggestion, please feel free to mention.