How can I Migrate/Split itunes/icloud account for a large family now that they have family sharing

Ok, now that Apple has finally come out with family sharing I need to get things sorted out and I think it is going to be a mess. I have 6 family members (my spouse and 4 children) all sharing/using one itunes account. For parental reasons this made perfect sense. Now with the the advent of family sharing and such we have alot of sorting and migrating to do and I am very unsure how to go about it. Here is what we have.
Myself - I have a 64GB iPad 3 and a 64GB iPhone 5
Spouse - 64GB iPhone 5
Children - x4 16GB iPhone 5C (pink, blue, green, and a yellow)
We have had one itunes account now for several years, we used to have x4 16GB iphone 4's and a 16GB iPod touch 4 so we needed it to be shared at the time. We all have different Game Center ID's and Facetime/iMessages are all setup to the phone numbers (aside from mine which also uses the itunes e-mail). We currently have 1 upgraded icloud account with 200GB of storage on it (love the new tiers). So here are the questions.
1) How do I go about using and isolating all the devices so they can all use the iCloud storage? Right now if I try and setup backups by device under the what to backup there is no simple "Full Backup" option, they have all the categories separated. I cannot backup my daughters contacts without forcing a merging of them and so on. Same thing with Documents and Data. Would I need to setup a different iCloud account for each device now?
2) iTunes Music/App purchases. Now that they have a family sharing function I am assuming it would be a good time to separate all the devices (aside from my personal iPad/iPhone). If I understand correctly we need to setup a new itunes account for each and link them with family sharing, does this then allow us to disperse/move items from a singular to the multiple account (at least a one time option to move around) or would it simply be shared off the original account? My daughter for example will be 18 next summer and as such no longer under our care. How do we move her items to her account? She has a lot of purchased Music. Now keep in mind I am talking about an account for someone who was 12 when she had her first device and as such needed to be under her parents.
I just want to state that repurchasing things is NOT an option, and to be frank,  according to Canadian laws pertaining to *licensing* we actually own the product if we paid for it and have the right to transfer the ownership thereof. This issue went through the courts regarding used copies of OEM editions of Microsoft Windows several years ago and they closed the legal *license* vs ownership separation.

Go to appleid.apple.com to manage the ID, sign in and select to the Name, ID and Email Addresses section, then change the birth date on the bottom right.  At the present time you may not be able to enter the correct birth date, but others have had success changing the year to 2000, or the date to 1/1/2001, both of which will have child ID status.

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