I don't think mentioning the insurance was necessarily a bad thing. I tend to tell people that they NEED to put reality in a WASs face every chance they get but the key is it has to be done very carefully because if it appears you're just being an ass - and retaliatory - you're gonna piss her off and if she's MLC that could REALLY be a bad thing.
Your wife needs to understand the reality of the situation as much as is possible however she needs to discover it entirely on her own. MLCers have a real knack for blaming everyone (you) for their circumstances. Sometimes it's not til they're left standing alone - their family and finances in ruins - that they start to see the truth of what they've done.
That said, you don't want her to come back for economic reasons only.
