Necessary and sufficient conditions for reducidibility of a self-adjoint linear relation in a Krein space are given. Then a generalized Nevanlinna function $Q$, represented by a self-adjoint linear relation $A$, is decomposed by means of the reducing subspaces of $A$. The sum of two functions $Q_{i}{\in N}_{\kappa_{i}}\left( \mathcal{H} \right),\thinspace i=1,\thinspace 2$, minimally represented by the triplets $\left( \mathcal{K}_{i},A_{i},\Gamma_{i} \right)$, is also studied. For that purpose, a model $( \tilde{\mathcal{K}},\tilde{A},\tilde{\Gamma } )$ to represent $Q:=Q_{1}+Q_{2}$ in terms of $\left( \mathcal{K}_{i},A_{i},\Gamma_{i} \right)$ is created. By means of that model, necessary and sufficient conditions for $\kappa =\kappa_{1}+\kappa_{2}$ are proven in analytic terms. At the end, it is explained how degenerate Jordan chains of the representing relation $A$ affect reducing subspaces of $A$ and decomposition of the corresponding function $Q$.