How do I turn this space half office half living room?
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Can we see a picture please?
A few photos would help us help you.
When we had an office/ living room combined we set our couch towards the middle of the room and put the office desk and files behind it on the wall near a window. It separated the two spaces yet used the space very thoroughly and in an organized way. Hope you have room to do the same.
Add new walls, electrical, lighting, etc. Screens could provide separation if you don't want to go to the trouble of making it a permanent structure - especially if you want to sell the house later.
Hi. If this is going to be a permanent situation, use a floor-to-ceiling bookcase to separate the space. Having it open will have light show through but be a definite division.