Oh, a couple other things I learned which can help. If you put clothing on your character (why?!
![Cool :cool: :cool:](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
) and set something like a couch to collide with the character, it may not look quite right due to the clothing as it is colliding with the character, not their clothing. What you can do is create a GeoShell for the character, size it up a little to cover the clothes, make it invisible and set the couch to collide with it so you don't get clothes clipping.
Another solution I found, similar to what you mentioned, except in reverse, rather than exporting two characters and then fiddling with them to make them into one, you can simply set the object, like a couch to collide with one of the characters, then export the couch instead after it has the deformation. Then re-import the couch with deformation and set a smoothing modifier on it again for the second character and voila. It's simpler. I just tried it again with a cube and two spheres and it works fine and is easier than exporting two characters and fiddling with them.