How are playoff divisions and seeds decided?

When building playoff brackets, we sometimes split leagues into divisions. 

When determining these divisions, we often break teams up across them subjectively, before ranking them in those division objectively based on their standings points. 

We recognize that every 5-1 record is not equal, so we try to split teams up subjectively based on umpire/referee/supervisor feedback, strength of schedule and team history to make the most competitive playoff brackets possible and give every team their best chance at winning a championship.