IPad Given to Spouse - What Happens To Apps?

My new iPad 2 arrives tomorrow. My current iPad is going to my wife, who has here own iPhone 4 and her own Apple account.
I'm pretty sure that I know how to backup the iPad and then restore to the iPad 2 to get all my apps over there. But what happens to all the apps I've purchased for the iPad when my wife tries to use it on her own Apple account through her own iTunes? Is there a way to transfer these apps to her account, or will she have to use my account from now on?

I was afraid you'd say that.
One last question if you don't mind. Having both iPads on my account isn't problematic at all, but each iPad should be able to sync its own set of all the apps in my account as well as individual setting for syncing photos, music, etc., correct?

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IPad Given to Spouse - What Happens To Apps?

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