Use it when bargaining or reaching a mutual agreement on price or terms. We couldn't decide on the sale price, so we decided to split the difference.
Pro Tip 2/3
Conflict Resolution
It helps avoid conflict by finding a solution that both sides can accept. To settle the argument, they agreed to split the difference on their starting times.
Pro Tip 3/3
Common Ground
It's about meeting halfway, often used when each side has opposing views or offers. They each had different plans for the holiday, so they split the difference and did a bit of both.