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Network model partitioning is a key component of distributed network simulations. Simulations slow down considerably due to inequitable load balancing and heavy inter-host communication leading to unbounded synchronization overhead. Also, regularly refreshing the node partition is necessary due to to the dynamic nature of simulation load and event generation. In this paper, we propose a distributed method for network partitioning which includes a coarse initial partitioning followed by iterative improvements in the partition. We suggest a sparse-cut based method to identify nodes eligible for exchange.