What can I do about my neighbors harrassing me?

Long story short, I have a crazy neighbor with a crazy daughter, ever since we moved into our new house they have been nothing but trouble, all of the other neighbors tried to warn us and we decided to give them the benefit of the doubt, she recently got custody of her grandson " we don't know how in the world that happened" and he loves to play with my two daughters, all of a sudden one day they just started being total bitches to us and making their grandson say hurtful things to my kids an making them cry, My husband is a police officer so I have to behave myself or it will look bad on him, we can't even walk out side with out them saying stupid stuff to us and to my kids, I don't feel safe even letting them go in the front yard by thierselves because she is crazy and I really don't know what she is capable of. She has even called the law over here and tried to have my husband " which is a police officer" arrested on these crazy accusations that are no where the truth, She is trying to ruin our family, she is trying to get my husband fired from his job, she even called the mayor, but the all think she is crazy, but she keeps playing the " brotherhood card" saying that the only reason their not doing anything to my husband is because he is a police officer. If my husband loses his job we will lose everything and we have two kids to raise and this is really bothering me. I stay stressed out and don't even want to walk outside from being afraid that they will try to provoke me.