Definitely can frag the candy cane! Just clip it with a pair of bone cutters at the branch. I usually cut at where the branch attaches to the main stem or another branch. Kind of like pruning a tree...
By the looks of it, you should be able to cut several 4-6 head pieces and still have a large colony.
The leather is another issue. You'll have to pull it and cut with scissors or razor around the edge. Here's a link to a good thread on how to do it...
Started with this Green Polyp Toadstool in the center of this pic. FTS 1/26/14 by ritter6788, on Flickr The glue isn't really necessary but a light spread of glue can help hold the coral still in a high flow area. The leather slimes though and glue alone won't help it attach much. The...
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HTH!