Abstract: We analyze the Stern-Gerlach experiment in phase space with the help of the matrix Wigner function, which includes the spin degree of freedom. Such analysis allows for an intuitive visualization of the quantum dynamics of the device. We include the interaction with the environment, as described by the Caldeira-Leggett model. The diagonal terms of the matrix provide us with information about the two components of the state that arise from interaction with the magnetic field gradient. In particular, from the marginals of these components, we obtain an analytical formula for the position and momentum probability distributions in the presence of decoherence that shows a diffusive behavior for large values of the decoherence parameter. These features limit the dynamics of the present model. We also observe the decay of the nondiagonal terms with time and use this fact to quantify the amount of decoherence from the norm of those terms in phase space. From here, we can define a decoherence time scale, which differs from previous results that make use of the same model. We analyze a typical experiment and show that, for that setup, the decoherence time is much smaller than the characteristic time scale for the separation of the two beams, implying that they can be described as an incoherent mixture of atoms traveling in the up and down directions with opposite values of the spin projection. Therefore, entanglement is quickly destroyed in the setup we analyzed.