The vast majority of work on motion segmentation adopts the affine camera model due to its simplicity. Under the affine model, the motion segmentation problem becomes that of subspace separation. Due to this assumption, such methods are mainly offline and exhibit poor performance when the assumption is not satisfied. This is made evident in state-of-the-art methods that relax this assumption by using piecewise affine spaces and spectral clustering techniques to achieve better results. In this paper, we formulate the problem of motion segmentation as that of manifold separation. We then show how label propagation can be used in an online framework to achieve manifold separation. The performance of our framework is evaluated on a benchmark dataset and achieves competitive performance while being online.