A change in strain partitioning and microscale failure mechanisms in dual-phase (DP) steel was found when both the morphology and distribution of martensite were altered compared to a banded DP steel grade benchmarked against a specific commercial DP grade. To achieve a DP microstructure with equiaxed and well-dispersed martensite, the concept of segregation neutralisation was utilised, where the ratio of Mn to Si elements was decreased (from 7.4 to 0.3) to neutralise the effect of Mn segregation on generating the banded martensite. A combination of micromechanical modelling simulations and in-situ notch tensile testing (within an SEM) was employed to compare the micro strain field and void formation rate between the segregation-neutralised and the benchmark grades. The benchmark grade showed extensive void coalescence along the direction of shear bands in the tensile sample after the average tensile strain of 30%. In contrast, no void coalescence was observed in the segregation-neutralised DP steel even at the average tensile strain of 80% just before failure. As a result, post-uniform elongation in the segregation-neutralised grade increased to 63.3%, compared to 30.1% in the benchmark grade.