He handled that really well, and it was smart of him to leave you out of it so she didn't do the "Oh WW must be threatened by my flirting with her husband!" thing. I hope you're both able to enjoy the meeting!
Well, I coached him a bit about that part because his original idea was to say, "You're making my wife uncomfortable." I had to explain to him how the female mind worked and how "Weeblewobble is threatened" might come up. I explained this would just amp up the drama and could stretch the situation out. His response: "Women are scary and complicated."
It's also the perception of power.
We've had 'harassment'-y issues come up where work.
I explain to my employees that I want/need to be kept abreast of all issues. I also have explained that they *NEED* to be the person who says "that is inappropriate"--if I march myself over there and say "quit asking the employee out, it's inappropriate", then tomorrow, when my back is turned, the activites continue.
It'll continue because "big mean Dawbs isn't looking, and, really she just wants to destroy this special love we have", "But YOU like it, only your boss Dawbs doesn't like it, right?", and "It'll be our little secret".
The person who addresses the harassment is the person seen as empowered to stop it. So the person receiving the harassment, should to be the person who ends the harassment.
(the moment the worker tells someone to knock it off, I'm there the moment after. And I come down like a ton of bricks. But it works better if the worker says it first)