Let $M$ be a smooth manifold of dimension at most $3$ and $S \subset M$ a smoothly embedded compact connected codimension $1$ manifold, separating $M$ into two components, $M_1$ and $M_2$. I wonder now if the following is true:
If $\pi_1(M)$ is finitely generated, so is $\pi_1(M_i)$ for $i=1,2$.
One might be inclined to think that this is a purely algebraic matter, but it is quite possible to find an infinitley generated group $A$ and set up a diagram of groups $A \leftarrow B \rightarrow C$ such that the pushout is finitely generated. Hence, there must be some topological restrictions i do not realize. Any help is appreciated.
This is false in dimension 3. For instance, let $M$ be the Whitehead manifold. Then there exists a compact PL (or smooth as you prefer) submanifold $N$ in $M$ whose complement has infinitely generated fundamental group. This is a special case of the main theorem in
T.W. Tucker, Non-compact 3-manifolds and the missing-boundary problem, Topology 13 (1974), 267-273.
In dimension 2 your conjecture is, of course, true, since surfaces with finitely generated fundamental groups are tame.