"How can we create a separate address book for himself and one for his wife."

Back in the old days before there were user accounts in Windows this was done with IDENTITIES in Outlook Express.

Fast forward to today. You would have a Windows Account for him and her. Each Windows account would have it's own address book and email system.

-> And if this is the old "I don't want to use Windows accounts" request then you may be dealing with a brick wall.