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You should check with your lawyer first of course, but if you aren't making that much money from her content then what you should do is just delete her from your site and be done with it. What ever the real reason is, it's obviously causing her lots of stress, and you don't need her stress to become your stress.
Plus if she, her family or new representation sues you out of state, you'll have to spend money just to defend yourself.
Do whatever you think is worth doing of course, but if her content isn't worth the investment you made, delete it all and move on. There's tons of other pretty, smart girls out there that you can work with for years to come.
Good luck!
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