In this case, switching to a different family is the same as "turning off the game" for the first family. Pausing the game is an entirely different thing, which will "suspend" everything in the game - the family won't sleep, eat, work, or anything else. If you want each family to get a good night's sleep when you're playing multiple families, just tuck each family in for the night, move on to the next one and do the same, and on the last family, exit (quit) Virtual Families.