Whew! Rock and a hard place.

Simple really. The person who signs the cheques gets to make the requests, no-one else matters. The OP said the cheque signer requested the software be removed. Nothing else to be done.

Your rule of operation is you should have a single designated point of contact when dealing with a business. All requests must go through that contact, otherwise chaos rules and you end up with conflicting requests such as this and the cheques stop being written.
 
Here is how I responded:

In regards to installing it on XX's computer I don't feel comfortable installing it without his knowledge. When he discovered it was installed years ago I was given a stern explanation that I was to never re-install it on his computer, and XX is someone I do not want to disobey. Of course if you talk him into it and he agrees I'll be more than happy to install it on his system. I would give you the same courtesy if the situation was reversed.
 
Sheesh. Why is the sky falling here?

Here's what you're going to do. You're going to very directly tell them that you need to meet with both of them at the same time. You will not put that program back on the husbands computer until this sit-down happens. If she doesn't like that then you tip your hat and say "so long then" and walk out the door (she'll push back but eventually agree). During the sit-down, you're going to explain the situation to both of them as clearly as possible and then say they need to decide together what's going to happen. You then say that you're going to step out of the room at let them discuss/decide independently. You'll probably get anywhere from a 1/2" off your seat to 2 steps from the office door before they'll tell you to put the program on the system and let it run. The important points here are to be direct, be polite but firm, and be clear.

Fire's put out, you're no longer the bad-guy, you've dealt with the situation (appropriately), and everyone knows what's going on.

Sometimes, as a tech, you have to play Dr. Phil.
I'd do the same thing. You may run the risk of losing the client, but then.....do you really want a client like that?
 
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