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Divide option is not meant for meshing in ETABS. It is to "divide" an already drawn panel after one has changed his/her mind regarding the assignments of that element. Having said that, you can use it for meshing as well. But, it will become very cumbersome and lengthy when you want to change some assignments in divided slab elements, as you will then have to select those small panels by zooming on screen. Use meshing option to mesh the area elements. Meshing can be viewed by activating the "Shell Analysis Mesh" option from "Set View Options" tab.