ITunes account, purchases & family share with divorce

My wife, daughter and I each have individual iCloud account but we have been using my account as the iTunes store account for purchasing content. I set up the new Family Sharing option with my account as the master account. What happens if I discontinue that? Will my daughter and wife lose access to previously purchased apps (including one bought before iOS 8)?

You can't have it both ways.  Either you give them the password or you don't give them the password.  All apps (free and paid) require the password.
Option #2 is to give them their own Apple IDs with no credit card attached.  One iTunes on one computer can support multiple IDs.  Similarly one iPod can support multiple IDs.  The only nuisance factor is app updating.  If done from the computer when logged in to the "wrong" ID, it's necessary to log out and back in again.  It's a tad easier if done from the iPods as there is no need to log out/in.  Unfortunately, in both cases the correct password is required so you would have to do the updating for the paid apps.

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