Gently unearth peony bulbs, using a shovel. For best results, wait until after several frosts have left the peony dormant for the season.
Remove foliage that remains on the bulbs.
Shake the bulbs gently to remove as much soil as possible. Wash the bulbs in tap water and divide them, using a sharp knife, leaving between three and five buds on each section of the bulb. Don't wash bulbs that are not going to be divided.
Place the bulbs in a basket or bucket in a storage area that will remain above freezing but below 50 degrees Fahrenheit. Dampness, warmth and light can lead to root rot or the bulbs sprouting and attempting to grow.