The temperature-induced liquid-liquid phase transition (complex coacervation) of a polycation-anionic/nonionic mixed micelle system was examined over a range of macroion concentrations and polycation molecular weights (MW) using turbidimetry and dynamic light scattering (DLS). DLS revealed a progressive increase in complex/aggregate size with temperature up to the phase transition at T(phi), followed by splitting of these clusters into respectively smaller and larger particles. We present two explanations: (1) large (200-400 nm) clusters (soluble aggregates) are necessary and sufficient coacervation precursors, and (2) the process of coacervation itself is accompanied by the expulsion of smaller aggregates to form submicrometer droplets. Although a reduction in T(phi) for higher MW appears to be correlated with larger clusters, in support of model 1, the opposite correlation between cluster size and T(phi), is seen upon isoionic dilution. We conclude that enhanced coacervation and increased cluster size at high polymer MW arise independently from increased intercomplex attractive forces. Dilution, on the other hand, leads to diminished cluster size, whereas the decrease in T(phi) on dilution is a reflection of coacervate self-suppression, previously observed for this system. The splitting of clusters into large and small species near T(phi) is explained by macroion disproportionation, as proposed by Shkolvskii et al for DNA condensation. We demonstrate and explain a similar phenomenon; broadening of the phase transition by an increase in cluster polydispersity, resulting from an increase in surfactant polydispersity.