victim
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Related to victim: Victim of crime
vic·tim (vĭk′tĭm)
n.
1. One who is harmed or killed by another, especially by someone committing a criminal or unlawful act: a victim of a mugging.
2. A living creature slain and offered as a sacrifice during a religious rite.
3. One who is harmed by or made to suffer under a circumstance or condition: victims of war; victims of an epidemic; victims of poverty.
4. A person who is tricked, swindled, or taken advantage of: the victim of a cruel hoax.
The OP, his wife and his son are all victims of a circumstance which has caused them harm. Being a victim does not always have to be in cases of cruel and unjust treatment. So yes, it is relevant to say that everyone in this scenario is a victim. Because they are.
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"My situation with my m.i.l. is irrelevant. This is about a father being able to see his son and GC while his wife is excluded from any contact."
Actually, this is post about a father trying to make a very difficult decision that will affect the rest of his life. Every single person in this family is in a rather bad situation, through no fault of their own.
Neither of our scenarios are relevant to the OP, though I explained mine because I felt it was similar enough to his scenario to support the fact that I suggested what the possible impact will be on his relationship with his son and grandson.
The OP asked and I was honest about what impact a similar decision had on my relationship with my father. A scenario that could in fact become true the OP's case as well.
I agree that this whole scenario is likely to be unsustainable, which is why I suggest the OP look at every possible consequence of his decision.