Split string using rules
Python 2, 92 90 88 87 86 85 bytes



r=''
n=0
for w in input().split():L=w[:5]&lt;w;x=n+L&lt;3;r+='| '[x]+w;n=n*x-~L
print r[1:]


Try it online!

-1 byte, thanks to Kevin Cruijssen