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A common workaround is to set the library owner's Steam install to offline mode. It would let the borrower through family share play games while allowing the library owner to continue playing games that don't require them to be online, like single player games. If you're hoping to both be online in some multi-player game at the same time while using your library, that's not going to happen. In those instances you'll want to make sure that she owns a copy of that game on her own account.
Clearly it does not work that way, so it does not matter.
Because to play the game at the same time, one of you needs to be offline. You can't play together online when one of you is offline.
With LAN, at least you could connect to each other on your local network. Again though, hardly any newer games even support that.
Really the best thing is for her to just get her own account with it's own library.