My wife dislikes my parents due to the problems they caused in our marriage and she is demanding from me to cut ties with my parents. Is it allowed in Islam?
Bismihi ta'ala
It is very unfortunate that your wife is holding onto a grudge, especially towards her parent-in-laws, which is not good and will affect her relationship with you as well. Whatever happened, and if they were right or wrong, both sides should think greater than that and focus on building good ties with each other.
Her demanding you to cut ties is also very unethical and haram as well, and you must not accomodate to that as well.
She must learn to forgive and forget, and respect elders, and forcing someone to cut ties with parents is gravely wrong and a major sin.
And Allah knows best.