I must admit, maybe it's a cultural norms thing, maybe my family were just weird, but I don't quite get the stress over the kids seeing their step/father in his underwear.
I saw my parents naked - stepping out of the shower as I'd barge in to ask a question (children: not patient!), going in to wake them up in the morning, talking to them while they were getting dressed, whatever. It reduced in incidence significantly as I got older, but there was never a sense of shame or prurience about it. Bodies are bodies; we all have them in some conformation, and treating them as Automatically Sexual is not obligatory.
That said, I do think it's a dick move (heh) of the SIL not to dress when hosting guests, even unwelcome ones, but that's a courtesy and manners thing, not a think-of-the-children thing.
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I saw my parents naked - stepping out of the shower as I'd barge in to ask a question (children: not patient!), going in to wake them up in the morning, talking to them while they were getting dressed, whatever. It reduced in incidence significantly as I got older, but there was never a sense of shame or prurience about it. Bodies are bodies; we all have them in some conformation, and treating them as Automatically Sexual is not obligatory.
That said, I do think it's a dick move (heh) of the SIL not to dress when hosting guests, even unwelcome ones, but that's a courtesy and manners thing, not a think-of-the-children thing.