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Hello @thegienger and welcome to the community!
First of all, if everyone wants its own library, you all need a seperate account. You can't share an account with other people, it will stop playing music when another one tries to listen to music at the same time. Actually, it's illegal/not allowed to share a premium account. If your country supports it, look for the family subscription plan.
But if you want to share an account even if it's not allowed, you can create folders on the desktop client for each "library" (folders in folders is possible so perfect for your situation). I don't recommend to do that and would rather suggest that everyone gets its own account.