It not only divides asunder the righteous from the wicked, but it divides the wicked parts of the righteous out of themselves. We are cut the bits as people by the sword of the gospel. Constantly finding fault in ourselves that divide us from ourselves. As a young adult in this world of so much sin and media, it's hard to separate ourselves fully from the world we are a part of.
The gospel has been called a refining fire. This life is a probationary "test" which can often feel like a competition. It's a survival of the fittest kind of thing as viewed by most of the world who believe in evolution. Coming home from a mission and trying to get into a good college, get good grades, find a companion, get a good job in order to provide for the family, it can feel more like a competition than anything else. Going on first dates feels more like sizing up; is this person what I'm looking for? Am I good enough for this person?
The gospel is the sword that provides peace for those that are enjoying the love of Christ and those that are suffering in a bitter world.
The gospel is also the sword which separates families and friends. Those that are living the gospel clearly feel a distinction between themselves and those they love that aren't. On the other hand, those that aren't living the gospel often feel judged by those that are.
This sword creates a dividing line that can be seen as stereotyping. It is hard to ignore from both sides of the line, yet we are told that all people are the same, that we should not judge.