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To change the formatting of footnotes in a Word document, you need to first insert the footnote by clicking on 'Insert Footnote' in the references tab. Changing the formatting, such as separator lines and spacing between footnotes, is a bit tricky and not the most straightforward process. Debra Saavedra, from legal office guru, demystifies the process in her tutorial. She covers changing separator lines, continuation notices, and restyling footnotes to give them more space. It's important to note that while it is possible to change the formatting of footnotes, it may not be the easiest process to find.