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Partition

C. The act of dividing; especially the division of real property held jointly or in common by two or more persons into individually owned interests. 

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Legal Definition - 
1. Something that separates one part of space from another. 2. The act of dividing; especially the division of real property held jointly or in common by two or more persons into individually owned interests.--Also termed partition in kind.
Black's Law Dictionary® Eighth Edition © 2004

Current Usage - 

America has three choices. We can continue on the present course, essentially waiting to see if one element of our current Catch-22 crumbles on its own—while our forces and the Iraqi people continue to bleed profusely. We can jump ship, drawing down forces gradually and virtually guaranteeing a civil war. Or, we can move toward partition, aiming at three independent states, each more likely to provide an easier transition to stability than we foresee in Iraq as a whole. 
A Policy Of Partition?  by Patrick Doherty

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