Haha, heard this right after "They can get more money." Sounds like we have a hostage situation over here!
Could you also say "Sabemos donde su familia vive."? Or does the object HAVE to come after the verb?
Nope, that is yoda-speak. Spanish phrase construction requires the object follow the verb.
I'm not sure I understand this explanation. In the clause "su familia vive", isn't "su familia" the subject?
I think what you are asking is - In the lesson phrase, Sabemos dónde vive su familia. and the alternative from dylancmiller isn't su familia the subject? The answer is no, it is the object of the verb phrase in the dependent clause. The sentence breaks down like this:
(Nosotros) is the subject identified by the verb Sabemos which is in itself a complete thought ("we know") but leads to the question "we know what?" -- donde vive su familia which is a direct object clause identifying what we know.
Wow, that's a threat if ever I heard one!