How to make on account into multiple accounts?

This question is actually for my sister, but I am her Apple tech support, so here goes.  She has a husband and two kids.  Up until now they've all used one single Apple ID for everybody.  This allowed her to control what the kids downloaded, and ensured that they didn't accidentally spend money on in-app purchases.  But the downside is all her E-mail comes in under her son's name, and every time she plugs an iPhone or iPod Touch into her windoze computer, iTunes gives her some sort of error message.  Meanwhile her son is unable to face-time.  There are other problems too.  So she would like to now give everybody their own Apple ID.  I know that's easy enough to do, but what will it mean for apps etc.  Right now when they (for example) download a paid app or game, they can all use it.  What will happen when they each have their own account?  And what will it mean for existing apps?  Is there any way to move a game from the main account to her sons or daughters, or will we have to pay for them again if we want to move them?  Is there an easy answer and I just don't know it?  Or are we just going to have to bite the bullet and spend some money to re-buy apps she already owns?  Help!?!

Existing applications can still be used, but will need to be updated from the original Apple ID. They can't be moved between Apple IDs without deleting and redownloading them, which will require each separate Apple ID involved to buy them.
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