In-law embracing divorcee? That's not quite right (7)
I believe the answer is:
inexact
'not quite right' is the definition.
(I've seen this before)
'in-law embracing divorcee?' is the wordplay.
'law' becomes 'act' (I've seen this before).
'embracing' is an insertion indicator.
'divorcee?' becomes 'ex' (an ex-spouse).
'in'+'act'='inact'
'inact' going around 'ex' is 'INEXACT'.
'that's' acts as a link.
(Other definitions for inexact that I've seen before include "Not precise, like some sciences" , "Not precise, ambiguous" , "Nice tax (nag.)" , "Vague" , "loose" .)