I am wondering if there is a function to make two objects split into separate objects where they overlap.

"Two objects" are already "separate objects", no? Please explain in detail how you want this to work, best of all with an example. Please submit an RFE attaching your example, rationale for such a function (why is it useful and why workarounds are not acceptable), plus any other information that might help developers (e.g. proposed command name, shortcut, etc).

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