Software developed before being hired litigation

This is my first post so please bear with me if I'm in the wrong place. I have a question which has more legal aspects associated with than technical.
I was asked by my ex employer to develop a demo website for one of their customers. To speed up the development of the demo in addition that we didn't have much time, I pulled out one of my old applications I have developed for one of my projects 2 years ago, and where much of its functions are being used by another application of my current customers such as Treeview navigation, users and groups and tabs navigation modules. It was in good faith and just to help them out speed up the demo and have something very quickly otherwise I would have never done that but just created some static screenshots.
So I took (copy/pasted) that application, created a new photoshop template with new icons and all the stuff and made some minor modifications to fit the whole thing fit with the ex employer demo requirements. The ex employer was impressed with how speedy the "development" of the demo was going into thinking that it was from scratch even if I was trying to make it clear that it wasn't the case.
Now after I got abusively fired by the ex employer for a reason that isn't relevant to be discussed here, he, as I'm sure you could guess, asked for the demo code. I provided them with the photoshop (psd layers file), the icons and other graphics and a complied (Java class files) version of the demo and told them that that what belongs to them.
The case of the firing will be soon heard in court in the coming months and I'm sure they will try to bring out the demo litigation even if it is not related to the case in an attempt to try to discredit me.
My question is how should I deal with this in court and how best to go about this before people who would have little if any computer and software knowledge since obviously I don't want to hand out the source code that I was working on for years before being hired by the ex employer?

I'm not a lawyer, but in most cases for things like writing, software development, etc., stuff is created as works-for-hire, which means that the employer owns all rights for work done as an employee.
If the stuff you gave the employer was used somewhere else already (and there are already paying customers for it), then arguably you didn't have the right to give the employer the code.
But all this is moot if you were never actually employed. If he paid you nothing, you owe him nothing. I suspect it would be very hard indeed for his lawyer to suggest that he owns all these materials if you were never compensated in any way for it or the additional effort you put in tweaking it.
Whenever I start a new job, there is pretty much always an addendum to the employment contract that lists prior inventions (which are thus not transferred to the new employer). Presumably, if you were hired by this employer, you would have listed this software on that addendum. If you didn't list it but signed a contract he probably wouldn't own the software, but it would be much harder to prove that. But since no contract was ever negotiated or executed (right?), I don't see how he could even use that.
In short: if there was no contract, and no payment on his side, it's ridiculous to assert that he owns everything. I suppose he could argue there was a verbal contract, but that would be difficult to prove anyway, and nearly impossible to believe if there is no compensation. I believe that contracts in which one side gains nothing are often considered void -- both sides gaining something is one of the bases of a valid contract.
So if you're telling the truth, the only way he could win this is if he's lying, possibly via a convincing lawyer.
Just hire an additional lawyer if you have to for god's sake. You probably don't need a software law specialist, because prior works as a principle probably applies to all kinds of work-for-hire contracts, but if your lawyer feels s/he needs the help, then just do it.
And don't work for scumbags next time. Anybody that insists on you working before signing a contract is suspect.

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