All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His slave and messenger.
It is incumbent on the husband to provide (separate) accommodation for his wife and she is not required to provide accommodation for herself. She is not obliged to live with her in-laws, including the mother-in-law as highlighted in Fataawa 101899, 31645 and 84608. Moreover, a wife is not obliged to serve her mother-in-law as per the Sharee‘ah, but she may willingly volunteer to do so; this has been underlined in Fatwa 84909.
Scholars asserted that if the wife is like those who are served [i.e. has servants], it is incumbent on the husband to provide her with a servant in the marital house. Hence, what your husband said to you is wrong and he should not repay your kindness with offense.
Verily, a husband is commanded to live with his wife on a footing of kindness; Allaah, The Exalted, says (what means): {…And live with them in kindness. For if you dislike them - perhaps you dislike a thing and Allaah makes therein much good.} [Quran 4:19]
Indeed, when the husband threatens his wife with divorce if she does not do such-and-such, this contradicts the commandment of treating her kindly.
We advise you to adhere to patience and implore Allaah to rectify your affairs and bless your husband with sound judgment. You should kindly advise him and beware of letting this problem be a cause to marital discord and disputes between you, which may lead to the collapse of the family and children's loss.
Allaah Knows best.