I would ask the kids about it if you think you can manage it. If they hate the idea, then don't bother.
Friends have a joint party for their kids, but they're really little. They don't care. They got a lot of similar presents (being the same gender and age). I agree that you need to be VERY CLEAR about who pays for what and what is for which kid. Maybe have the same # of balloons in different colors (like one kid gets 12 blue and one gets 12 purple) so it's even but different. At 5, they'll have their own ideas, so I think give them what will happen (decide ahead cake vs cupcakes, for example) and THEN let them personalize that choice.
I suggest neutral territory, like a park or if you have an indoor party room somewhere. I liked going once for both families, but they were both close friends.
Friend did a joint party for her kids - 4 yr old girl and 1 yr old boy. She did a superhero theme and it worked fine for both. The guest list was mixed genders and the girls loved playing dress up as much as the boys liked being heroes. Again, go back to the kids. You could do a lot of themes with different genders - animals, pirates, clowns, cars, etc.
Another friend's sons are 2 yrs apart to the DAY. They always have a joint party, but like I described above, each boy gets his own thing. If T wants Ninja Turtles and M wants cars, that's what she works with.