My children are currently sharing an account with my ex husband, how can create them their own account so they are not dependent on him, will they lose all their music they have bought on his account?

As far as I can tell, they don't have their own libraries or store accounts

Thank you this helps, also once they create their own id, will their purchased songs be theirs?
Yes.
Can they share a library together somehow??
They can either share an Apple ID, or, if they create two seperate accounts, they can authorize the same computer with two different apple IDs so purchases across both accounts are accessible on the same machine.
An additional option for sharing an iTunes library across machines on the same network exists:
iTunes: How to share music and video - Support - Apple

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