This is horrible. It sounds like he was threatening you and your children. Definitely time to learn about the laws, talk with the police just for future reference on what to do. Remember that you are just asking on what you should do the next time. You are not filing a complaint, you are only there to ask what to do the next time.

If he is connected, maybe he will hear from his connection to lay off.

And another reason to get involved and get to know your local politicians and police.

Meanwhile, I think you gave sound advice to your children. Stay composed and stay to the facts. It goes a long way.

Hope your ugly neighbor moves away!!