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Spouse wants whole deposit back but wife is staying...

I have a husband and wife tenant.  The husband wants off the lease of the apartment, but the wife wants to stay (they're obviously having problems).  We told the husband we would give him his half of the deposit back, but he is demanding the whole thing.  What are my obligations?  We are in Minnesota.

...And they are both on the lease.
sounds almost like a sublease situation. Based on when I subleased: I believe you have no obligation to return any of the deposit. When I subleased, the security deposit was between me and the original leaser. the wasn't even an interum inspection. when there were damages, I had to call the manager to see what it was to figure out who owed it.
I would do a mutual termination, refund deposit as a whole as if they moved in the same as move out send deposit to both, let them fight it out with their attny's.  then elect for the staying spouse to sign a new lease/deposit as individual.
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