When looking at your character inventory, you have all of the items they have equipped showing with an E on top of them signifying they are in fact equipped, among everything else.
It would be nice if there was a key/button press you could use to toggle Show/Hide Equipped. Would look cleaner and make parsing your inventory at a glance easier when they're hidden.
You can still see what items are equipped on each character around their in menu character model. Then you could just unhide them when you want to manage/move them.