Want to share my iCloud storage with my spouse, Family Sharing?

Wife has a maxed storage 4s can't upgrade to iO8.1.2.  We got iPhone 6 for each other, but she doesn't have icloud storage to get everything tranferred.  I have 200GB, and inititated Family Sharing.  Her storage plan has not changed from the default 5GB.  Wondering if there is something I have missed about sharing my storage, OR if I cannot do it even with Family Sharing

Hey d2boogie,
Congratulations on getting each other new iPhones and Family Sharing. Let's see if we can get things up and running for you both.
Family Sharing does not share your iCloud storage space. What it does do is allow you to share content such as iTunes store purchases, a calendar, and a photo album. It also consolidates billing for iTunes, iBooks and App Store billing. See this article for a description -
Family Sharing - Apple Support
In order to update your wife's older iPhone, I would suggest that you use the steps in this article - 
If you need more space for an iOS update - Apple Support
To transfer her content from the older phone to the new one, use the steps in this article -
Transfer content from an iPhone, iPad, or iPod touch to a new device - Apple Support
In particular this section -
Use iTunes
If you don't have an iCloud account or you just want to keep a backup on your computer, you can use iTunes to back up and transfer content on your device.
If you should decide to sell or give away the older phone, you may want to follow the steps in this article -
What to do before selling or giving away your iPhone, iPad, or iPod touch - Apple Support
Thanks for using Apple Support Communities.
Be well,
Brett L 

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