A small-angle light scattering (SALS) technique together with optical microscopy observation are used to investigate phase separation kinetics in films of low molecular weight thermotropic liquid crystal (4-cyano-4'-n- octyl-biphenyl, 8CB) with flexible polymer ( polystyrene, PS). The growth of domains is studied as a function of time, film thickness, and film composition. The light scattering results are correlated with the images obtained by optical microscopy observation. In this paper, we study the breaking of a bicontinuous network of polymer in liquid crystal into droplets and their further growth via the coalescence-induced coalescence mechanism. The appearance of droplets in the system leads to a strong scattering at small wave vectors, while the bicontinuous network gives a peak at a nonzero wave vector. Superposition of these scattering intensities leads to the appearance of a second peak in the full scattering intensity signal, when the bicontinuous network starts to break up into disjointed elongated domains. Finally, both peaks merge into a single peak, which moves quickly toward zero wave vectors, indicating a complete transformation of elongated domains into spherical droplets of variable size. We found that the separation process does not depend on the size of the system. Irrespective of the sample thickness, the network breaks into fragments always at the same time after temperature quench. On the basis of morphological analysis, we found that the average size of the droplets which formed from the network grows with time, t, as t(alpha), alpha = 0.9 +/- 0.1, in the isotropic phase and in the nematic phase.