I want to separate my daughter from my Apple ID without her losing data on iCloud

I want to separate my daughter from my Apple ID and preserve her iCloud data, etc. in the process. I want to use family sharing, which appears to preserve things but am unsure. As I understand it, she needs her own account ID, but family sharing should keep her iCloud stuff preserved once she signs off my account and onto her own with family sharing set up. Am I understanding this correctly? I don't want her to lose anything in the process.