'Theoretically' takes on odd dimensions here, doesn't it?
Usually we use theoretically to mean 'in principle' possibility. So, humanity can theoretically visit Alpha Centauri because it is 'in principle' possible to do so. However, suppose we live in a deterministic universe in which humanity never visits Alpha Centauri. Is it still theoretically possible to do so?
It still seems to be possible to do so, in principle. But how are we to parse this claim? Surely counterfactually; if things were different we could visit Alpha Centauri. That is to say, there is a possible world in which human being did visit Alpha Centauri. A possible world is merely a world which could exist. A world that contains no logical contradictions. I see no other interpretation for theoretically; in the actual world visiting Alpha Centauri is quite impossible. An event X is theoretically possible if and only if there is some possible world in which X obtains.
So, is it theoretically possible divide something by two indefinitely? I'm not entirely sure. But I suspect so; physically, there are possible worlds which are not constructed discretely - in Planck lengths. There are possible worlds with the resources (and beings with the will) to divide a physical space by two indefinitely. These are odd possible worlds, but possible nonetheless. Hence, if X being 'theoretically' possible means 'there is some possible world in which X obtains' it is theoretically possible to divide something by two indefinitely. Not possible in our actual world, but that is immaterial.
However, if one wants to also say 'it is theoretically impossible to travel faster than the speed of light' one is in trouble. Because if there are possible worlds which do not obey our Quantum Mechanics there are surely possible worlds which do not obey General Relativity. There would be no inherent contradictions in certain Newtonian worlds. It follows, there exist possible worlds in which one can travel faster than the speed of light. Hence, travelling faster than the speed of light is theoretically possible.
But this wasn't what you wanted to say! Nor, indeed, does it seem entirely right. In our actual world, traveling faster than the speed of light is both impossible and theoretically impossible. An action that violates 'laws of nature' is theoretically impossible.
So this is a different gloss on the theoretically possible. An event X is theoretically possible if and only if X is possible given the same laws of nature. But we need to modify this; if we live in a deterministic world and never visited Alpha Centauri, visiting Alpha Centauri would necessarily involve some violation of said laws and thereby be rendered theoretically impossible. Not a result we wanted.
We need to unite this nomic account with the counterfactual account. I suggest the best interpretation of 'theoretically' will be 'An event X is theoretically possible if and only if X obtain in some possible world with the same laws of nature as the actual world'. So, what makes visiting Alpha Centauri theoretically possible is that we do indeed visit Alpha Centauri in some possible world which has the same laws of nature as the actual world - our world. For instance, just that world in which humanity massively invests in space flight technology.
Moreover, this account of 'theoretically possible' means that (of course!) we cannot even theoretically travel faster than the speed of light. If it is a law of nature that we cannot travel faster than C, no possible world which shares our laws will have us travelling any faster than said speed.
Unfortunately, it is not so clear where this account gets us in the infinitely dividing a physical length by two case. Precisely, given the laws of nature being as they are it is not clear that we actually can do that in our world. A physicist had best weigh in here, but it seems that if the Planck length is the smallest possible length, we cannot divide by said length. This means, at least as concerns physical space, it is not theoretically possible to divide by two infinitely. One may divide a number by two infinitely, but after one hits this lower bound that number will no longer refer to any physical length. This is because there is no length smaller than that lower bound. A number cannot refer to something which does not exist.
So I offer three theses regarding what 'theoretically possible' is to mean. The first two seem to get into unsolvable difficulty. They both imply things which are theoretically possible are not theoretically possible. This is a contradiction. The third thesis is the one I favour. Unfortunately, it does indeed imply that dividing a physical length infinitely by two is, even in theory, impossible.