Deflect everything. After long combos, Headless will make an overhead attack. Deflect that one by pressing the button as soon as he moves his arm down (it's easier than it might sound) and he'll stumble forward. You'll have time for 3 charged attacks. On the second phase, keep your focus on Headless and bait his overhead attack. The Wife will jump a few seconds after you deflect Headless's attack, so you'll have time for only one charged attack. Then you should deflect the Wife's jump attack and run away or counter. Using the Gouging Top to fill up the Wife's posture meter seems effective, seeing as it is both faster than the fire cracker and has more range. After killing the Wife, the fight is easy, just deflect and wait for the overhead attack, rinse and repeat.