Need to move child onto their own Apple ID

My child has been sharing my Apple ID for years in order to buy music for her iPod (now iPhone and iPad). For years, we had our separate devices and PCs where our music libraries resided. However, recently, I activated iCloud for my new iPhone and iPad and now all of our data has meshed. I have her contacts, she has my contacts, music, etc. My question is how can I set up a distinct Apple ID for her but not have her lose her contacts, music, settings, etc.?

If you set up a new AppleID account you will not have access to items bought from the iTunes store. But iCloud accounts are separate from AppleID accounts; she can have a unique iCloud account with her own contacts, email, and other settings, but will need to use the shared AppleID to have access to the apps, music, books, movies, etc... bought from iTunes.

There are some ugly hackish ways to get around this, but they sound like a waste of time and very sketchy to me.