Wife to settle DV case before hearing.

After filing a frivolous DV based on false allegations of emotional abuse (no alleged physical violence), my wife got a TRO to get me thrown out of my house and temporary full custody of my kids. Suddenly her attorney wants to settle, saying it will spare everyone's expenses to not have a major trial.

Any thoughts on this? I don't want to risk custody issue with my kids but also cannot get over the injustice of what has happened.