And like I said, for years she has been nothing but great at work...... Including helping with catching staff who steal, overtime , no days off etc

I've read all the posts and I've to admit that I'm a sort of irritated. Would I have to read more stuff about the guy's "staff", I'd maybe commit suicide, or kill somebody. Now I know why people become addicted to alcohol and drugs!

Is it possible that the guy's business is running under a Thai's name, which could be the reliable dog chasing staff?

Too many dogs are causing too many problems.- ..

You should move out and leave it to them.

Dude, seriously? It's OK for her to rip you off, use your house as a Motel 6 for her family and friends ("Oh, and while you're here, feel free to help yourself to whatever you want."), let her son move in and become a squatter, but you're afraid to lose her as an employee??? <deleted>!!! If this is how she treats your home and possessions, just precisely how long do you think it'll be before she decides that your business assets are her assets, being as you obviously don't have the backbone to demonstrate that actions have consequences? Trust me on this one...if you don't give her the boot, the condition of your home will soon be the least of your worries.

Unfortunately previous Moderator warning to persons intent on having a flamefest went unheeded. More such have now been deleted.

As the problem has, per OP, already been resolved, thread is closed.

Note to the guilty: don't try taking your feud to another thread or you will both find yourselves on a posting holiday.