When you have to translate texts where a certain character is being used as a placeholder for linebreaks, you can try to define this 'special' character as a space. In my case it was the § character.
Initial situation with no term recognition because of the § character glueing words together:
Determine the Unicode value via the Edit menu:
Set this value via the Preferences:
Restart CafeTran and check:
The § character is treated as a space. Would be nice if CafeTran would automatically put it back. Now you'll have to do this manually.
Later on, you can check whether you've put back all § characters, by means of a QA for terms (define a glossary entry that contains an entry § TAB § ). At least I hope that this last step works too.
Also very handy in this context:
Best remove additions to the said Preference, once you've finished your project.