Consider a finite-dimensional algebra A and any of its moduli spaces M(A, d)(theta)(ss). of representations. We prove a decomposition theorem which relates any irreducible component of M(A, d)(theta)(ss). to a product of simpler moduli spaces via a finite and birational map. Furthermore, this morphism is an isomorphism when the irreducible component is normal. As an application, we show that the irreducible components of all moduli spaces associated to tame (or even Schur-tame) algebras are rational varieties.