Oh, EllaMary, I'm so sorry this has happened to your DS' (dear son's) marriage and that you have to witness it. Please resist all temptation to say anything about this to either of them. I know it may be hard, but I strongly recommend that you be supportive of both and stay neutral. By that, I mean, let them vent, if they wish, and make some sympathetic noises if you feel you need to, ("Oh dear," "I'm so sorry that happened," etc.), But don't speak against one to the other and don't argue ("But he has a great sense of humor!") and don't give out advice.
My guess is you really don't know everything that's going on between them, anyhow. They are each going to tell the story in a way to make themselves look better and the other one worse. So better, IMO, not to get in the middle.
As you say, "the children are (your) priority." Antagonize either parent and it could affect your relationship w/ the kids. Not only would that hurt you, but also, it would make things even harder on the children, IMO. They're lives are being disrupted enough.
I understand DS' complaint about your being friendly w/ DIL, however. I'm not sure what you mean by "friendly" though. If you just mean that you're pleasant when you see/speak to her, perhaps you could explain you're doing this for the kids' sake and to avoid being CO (cut off) from them. If you mean you're her "pal," doing lunch, etc. together, that may have to stop out of loyalty to DS. Not, however, if it will hurt your relationship w/ the GC.