The Collaborative International Dictionary of English v.0.48:

Disband \Dis*band"\ (?; see Dis-), v. t. [imp. & p. p.
   Disbanded; p. pr. & vb. n. Disbanding.] [Pref. dis- +
   band: cf. OF. desbander, F. d['e]bander, to unbind, unbend.
   See Band, and cf. Disbend, Disbind.]
   1. To loose the bands of; to set free; to disunite; to
      scatter; to disperse; to break up the organization of;
      especially, to dismiss from military service; as, to
      disband an army.
      [1913 Webster]

            They disbanded themselves and returned, every man to
            his own dwelling.                     --Knolles.
      [1913 Webster]

   2. To divorce. [Obs.]
      [1913 Webster]

            And therefore . . . she ought to be disbanded.
                                                  --Milton.
      [1913 Webster]

The Collaborative International Dictionary of English v.0.48:

Disband \Dis*band"\, v. i.
   To become separated, broken up, dissolved, or scattered;
   especially, to quit military service by breaking up
   organization.
   [1913 Webster]

         When both rocks and all things shall disband.
                                                  --Herbert.
   [1913 Webster]

         Human society would in a short space disband.
                                                  --Tillotson.
   [1913 Webster]

WordNet (r) 3.0 (2006):

disband
    v 1: cause to break up or cease to function; "the principal
         disbanded the political student organization"
    2: stop functioning or cohering as a unit; "The political wing
       of the party dissolved after much internal fighting" [syn:
       disband, dissolve]

Moby Thesaurus II by Grady Ward, 1.0:

40 Moby Thesaurus words for "disband":
   break up, deactivate, debrief, decommission, demilitarize, demob,
   demobilize, detach, dichotomize, disarm, discharge, disintegrate,
   disjoin, disjoint, dismiss, disorganize, dispel, disperse, dissect,
   dissever, dissipate, dissolve, disunite, diverge, divide, divorce,
   go separate ways, let go, muster out, part, part company,
   reconvert, release, retire, scatter, separate, sever,
   sheathe the sword, split up, sunder