This an average discussion of dividing peonies but covers all the basics. There are some sites which give a longer version but they all say essentially the same. Now is the perfect time to dig and replant. I dig a hole larger than required, add some fertilizer to the bottom, and back fill to reach the correct depth. A straightedge item placed across the top of the hole makes it easy to set the new transplant to the correct depth. I prefer about an inch where two inches is recommended in colder areas.
http://hollingsworthpeonies.co...
Should have read your post more carefully but yes, cut the foliage down to about two inches prior to digging. No point in handling more material than required. I just cut all my peonies off for the winter.
