This invention relates to methods and apparatus for separating liquid products and catalyst particles from a slurry used in a Fischer-Tropsch reactor system. The preferred embodiments of the present invention are characterized by a separation system that uses a sedimentation chamber, which contains at least one inclined channel that enhances the settling of particles within the slurry. The enhanced settling separates the slurry into a catalyst-rich bottom stream and a catalyst-lean overhead stream. The catalyst-rich bottom product stream is preferably recycled to the reactor, while the catalyst-lean overhead stream can be further processed by a secondary separation system to produce valuable synthetic fuels. The inclined channel may be provided by a structure selected from the group consisting of tube, pipe, conduit, sheets, trays, walls, plates, and combinations thereof.