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Personally, I wouldn't be worried about collecting $250 from my wife's mother. If she gives you the money, do what you want, but tread carefully. That guitar could very quickly turn into a symbol of something with your and her mother if there's any animosity about it. I don't know the situation, so I may be reading too much into it. What I do know, is that if money is tight and I'm about to become a father, and I'm about to get a small windfall, I wouldn't be worried about blowing all of it on an acoustic. Maybe get a $100 Epiphone or Yamaha and put the rest away for when baby needs something.
That's just me...And not being preachy--just what hit me when I re-read this.
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