Translation:She would use magic in this case.
As a native Midwesterner, my instinct would be to keep "would use" together. But splitting them in this way sounds fine to me, just a little clunky. (The clunkiness is illustrated by the commas MarkGrand subsequently suggested.) Without italics or spoken emphasis I also don't feel any special stress. I think it makes sense to accept it as an alternative, especially since some folks may try to play it safe by transcribing the German phrase relatively directly.
PS. You can edit your post if you want to fix a typo.