Dialogue spacing separate from text
by Perry Karfunkel
(Plymouth, MA, USA)
Question: Does each bit of dialogue stand separately from any descriptive narrative text that would follow it? Answer:
Well, dialogue is generally separated from narration by being put in quotation marks. Also, you always start a new paragraph when you switch to a different speaker.
Apart from that, you would start a new paragraph if the story is shifting to a new topic or line of thought.
Let me refer you to a short article that goes into detail about how to format dialogue...
Best of luck.