Separating a wav file into single tracks

When I click the cursor at the end of each song, I add the label at the selection. My question: Do I need to use pause? Can I separate tracks without pausing the tracks?

No you don’t need to Pause

You can place the cursor and use the shortcut Ctrl+B to place the label at the cursor position

or you can use Ctrl+M to place a label at the current playback or recording position.