A method of separating a downhole tubular includes running a tool into a wellbore to a predetermined location on a work string and actuating flow actuated slips. The method also includes maintaining slips in a set position by providing a first upward force on the work string. The method further includes rotating the work string to separate an upper portion of the tubular from a lower portion using a cutter assembly disposed on the work string below the slips and pulling the upper portion of the tubing and the tool from the wellbore.