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To change footnote formatting in Microsoft Word, go to the References tab and click on insert footnote. Changing the separator line and adding more space between footnotes can be a bit tricky but is possible. Debra Saavedra from Legal Office Guru explains how to customize separator lines, continuation notices, and restyle footnotes in this tutorial. Detailed steps on reformatting footnotes are covered in the video, providing legal professionals with essential tips for Microsoft Office.