The early Solar system produced a variety of bodies with different properties. Among the small bodies, objects that contain notable amounts of water ice are of particular interest. Water-rock separation on such worlds is probable and has been confirmed in some cases. We couple accretion and water-rock separation in a numerical model. The model is applicable to Ceres, icy satellites, and Kuiper belt objects, and is suited to assess the thermal metamorphism of the interior and the present-day internal structures. The relative amount of ice determines the differentiation regime according to porous flow or Stokes flow. Porous flow considers differentiation in a rock matrix with a small degree of ice melting and is typically modelled either with the Darcy law or two-phase flow. We find that for small icy bodies two-phase flow differs from the Darcy law. Velocities derived from two-phase flow are at least one order of magnitude smaller than Darcy velocities. The latter do not account for the matrix resistance against the deformation and overestimate the separation velocity. In the Stokes regime that should be used for large ice fractions, differentiation is at least four orders of magnitude faster than porous flow with the parameters used here.