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To change the formatting of a footnote in a Word document, you must navigate to the references tab and click on insert footnote. However, adjusting the formatting, such as the separator line and spacing, is not straightforward. This tutorial by Debra Saavedra of Legal Office Guru explains how to modify the default settings for footnotes, including changing separator lines and giving footnotes more space. She also covers restyling footnotes to customize the formatting to your preference. The video provides a comprehensive guide on how to format footnotes efficiently in Microsoft Word.