Running 2 LMS Services or Multi Library question

Here is my situation and need your advice.
I am running LMS on a Lenovo TS140 with Windows Server 2012 R2 Essentials as my home server. Has multiple NICs and 32GB of memory.

I need to have two separate library's, One for my wife and I and the second one for my son. We both have large library's and it is getting to cumbersome to sort through all of the combined music.

As I see it, I have three options:

Run a second instance of LMS on the same server. Is this even possible on a Windows server?
Use Hyper-V and install either a Windows or Linux server with LMS.
Use the Multiple Library Plugin.

Who has any experience with this that can provide me with the best solution and best practices to implement.

Thanks