How was the earth divided? (Gen. 10:25)

> Gen. 10:25 > > And unto Eber were born two sons: the name of one was Peleg; for in his days was the earth divided; and his brother's name was Joktan. Through some simple math, we know that Peleg was born 101 years after the flood. I had assumed that this verse meant a demographic division, but I don't think there could be that many people on the earth yet (assuming only 8 survived the flood). I got this idea from v. 32: > These are the families of the sons of Noah, after their generations, in their nations: and by these were the nations divided in the earth after the flood. I understand that the name Peleg has some relation to division, but I'm not too well-versed on the original Hebrew meaning. Does this verse signify a physical division (like breakup of Pangaea), or something more like a demographic division?