Your fiancé can go to jail for Driving on a Suspended License; he can also be fined and license suspended when he becomes eligible to get his license back. You could be convicted for allowing an unlicensed driver to operate your vehicle. You do know that most insurance companies do no insure when someone without a valid license is driving? You are lucky the police did not impound car.
Mr. Penn is exactly right. There's the possibility of jail time for him, especially if he told the officer he knew that his license was suspended. Additionally, if he is convicted, there will be a mandatory new suspension of his license. That means that, even if he is able to take care of his financial obligations, he would still be facing an additional suspension period. I'd consult with a local attorney who can help him figure out the best approach given his specific circumstances.