Default UI Menu: Modify/Modify 3D Objects/Surface Mesh/Split Face by Isoline
Ribbon UI Menu:
This tool splits all normal faces along a common isoline (a plane cutting through the object).

To Split Faces:
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Select the tool.
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Hover over an edge of a face, the isoline will be drawn perpendicular to the edge.

- Click to split the faces along the isoline.

Note: Isolines do not cross merged faces.