Help! Cat related dilemma(may be long)

Okay, so I have a little dilemma. A few months ago, myself and a co-worker rescued two kittens age 13 weeks outside her condo building. Since she is only supposed to have two cats per her condo agreement, and hers are indoor/outdoor, I agreed to foster them. I had a room that could be closed off, and my kitties are very friendly. The kits are a boy and girl. Hubby was not supportive at first. We have a friend who is married, owns home, has a 13 yr old stepson and a 3 yr old female cat named Peanut. She had been talking about getting a male kitten for awhile, even had a collar ready for him. I offered her the little boy. She came over played with him, said she wanted him, and picked out a name (Jelly, as in Peanut Butter & Jelly). I wanted her to wait a little bit before picking him up b/c they had fleas, worms and the little girl is very skittish. We decided to keep the girl and her name is Suzie.
Okay fast forward almost 2 months. She says she can't pick up the cat b/c she is having work done on her house. Her cat is being housed in a camping trailer (heated) outside her house. She is getting work done on her house that SHE wanted, not her husband. Next thing you know she is having an affair with the guy doing the work, and is talking about leaving her husband for him. The affair thing is not a new thing, but I find the nerve of this to be a little bit crazy. Also, keep in mind this is an abbreviated version of what's going on. She also agrees to buy my husband an MP3 for his birthday, and was going to give him the money for it. That was 10/2. No money for it yet. I'm not worried about it, just kind of ticked about not keeping her word. She also didn't even call me on my birthday (thanksgiving day). Meanwhile we have the cat, and we like him. My husband says she doesn't deserve him (and this is really HIS friend) and has decided we are probably going to keep him and change his name- so far the new name is cookie.
What should we do? Hubby doesn't want to confront her on her behavior.Any thoughts? BTW this girl was in our wedding.

Wow! What a WEIRD situation! I feel sorry for her cat Peanut, and for the step-son - what a bad example of "model womanhood" to set for an impressionable young teen Sounds like Jelly might be better off with you, if you can keep him. I guess it mostly depends on how she treats Peanut; is Peanut cherished and well-cared for? And what if she gets a divorce - what happens to the pets? Maybe the "new love" won't want the cats.
Good luck on finding the right answers! Happy Birthday, by the way - mine's today, fellow Sagittarius! Susan

It doesn't sound like the woman is in a stable enough position to take on a new responsibility right now.

I agree with Kathylou it does not sound like she is stable enough to have a kitty.

I'd say keep the cats. You and your hubby are apparently much smarter than your "friend," and more responsible. The cats will thank you for it.

Thanks for the advice- her stepson doesn't know what is going on, to my knowledge. Neither does her husband. I didnt mention that he calls her "mom" as his mother died when he was 6 or so. Her kitty seems to be well cared for and has her kitty toys, kitty perch and everything. I don't neccesarily agree with the fact that she feeds her indoor cat chow and was hoping she would feed Jelly/Cookie something a little bit better, but I would deal with that. I have no idea who would keep the cats- I would assume she would, but haven't really discussed that with her. I would however assume that her husband would keep the dog.
It's just a weird situation- She invites us over to go out to eat with her husband and kid, and then we were going out to the bar with her. On the way to the bar, she drops the bomb about the new affair, oh and BTW he is coming to the bar, and her mom is also coming to meet this guy!
Meanwhile, the little kitty boy is fitting in more and more to my household- spent the whole night tearing around and is now napping behind me! He is only 20 weeks old and already over 5 pounds! I also enjoy having "twins".