Well it depends on how different the first part and the second part of the book is. If it works towards the same climax/ending but uses a diff POV character, I say keep it as one novel. If each part has sort of a self-contained ending, then a novella would be a good idea. It depends on how the story is currently structured or how your wife wants it to be structured. I'd say think about length suits the story best, rather than business interests.
I don't think there's any hard and fast rules about what form works best for indies: novellas vs. novels, series vs. stand alones... it all depends. Most people are used to purchasing full length novels, so there isn't really a disadvantage to selling a full length novel.
A series (esp w/ the first book priced cheap) could bring people in, but if they didn't like the first volume but they would have liked the second volume, they wouldn't find out about it and it would be a lost sale.
I've had experiences with many novels where the first 1/3rd or 1/2nd I wasn't particularly impressed with, but I kept on reading it because I just like finishing books. Then when I was about midway, the pacing improved and I got more into the book.
So again, there's no hard and fast rules. It just depends on what length/form would make the story stronger.
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