Both phones use the same apple ID. How do I change it on 1 phone?

I want to use the family sharing feature with the new IOS 8. My wife and I have always shared the same apple id. I sent her an invitation to join the account but since we share the same user id, I get a message that reads "You are part of XYX family. You need to leave your current family group before you can set up or join a new one".
How does she leave the current family group when we're both set up with the same apple id?

Family sharing is designed to share content between different apple Id's.  Not between different devices with he same ID.
If she is using your ID, then you are technically inviting yourself. which is pointless, as that Apple Id already has access to its own content.
You can go to http://appleid.apple.com  and Create the new Apple ID for her.
Then sign out of the relevant services on her phone and sign in with the new Apple ID.
On her Phone:
Settings->iTunes and App Sores->Apple ID->Sign Out
Settings->Facetime->Apple ID->Sign Out
Settings->Messages->Send & Receive->Apple ID
Settings->iCloud->Sign Out
Though  If you are using one Id and you have no issues with sharing one ID and all the content, I see no need to create a second ID just for a sharing feature you technically do not need.
Family sharing is geared more towards people with different ID's that want to share purchases, calendars, and other content form a single common ID, while still keeping access to their own Apple ID's and its  contents and purchases.

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