Here is a complete and elementary answer - the discussion in the comments was basically there.
Let $|\psi\rangle=a|00\rangle + b|01\rangle + c|10\rangle + d|11\rangle$ be given such that $ad-bc=0$.
Additionally, we have $\| \psi\|^2=|a|^2+|b|^2+|c|^2+|d|^2=1$.
Now the latter condition implies that $a,b,c,d$ are not all zero. So WLOG assume $a\neq 0$.
Now we have a decomposition
$$|\psi\rangle = |v\rangle\otimes |w\rangle= \left(a|0\rangle + c|1\rangle\right)\otimes\left(|0\rangle +\frac{b}{a}|1\rangle\right)=a|00\rangle+b|01\rangle+c|10\rangle+\frac{cb}{a}|11\rangle$$
where $\frac{cb}{a}=d$.
In this decomposition, $\|v\|^2=|a|^2+|c|^2$, $\|w\|^2=1+\left|\frac{b}{a} \right|^2$.
So the vectors $v,w$ are not normalised in general.
Hence introduce a rescaling parameter, say $\lambda\in \mathbb{R}_{>0}$, such that
$$|\psi\rangle=\lambda |v\rangle \otimes \frac{1}{\lambda}|w\rangle
=\left(\lambda a|0\rangle + \lambda c|1\rangle\right)\otimes\left(\frac{1}{\lambda}|0\rangle +\frac{b}{\lambda a}|1\rangle\right)
.$$
Now note that
\begin{align*}
\|\lambda v\|^2 \|\frac{1}{\lambda }w\|^2
&=\|v\|^2\|w\|^2\\
&=(|a|^2+|c|^2)\left(1+\left|\frac{b}{a} \right|^2\right)\\
&=|a|^2+|b|^2+|c|^2+\left|\frac{cb}{a}\right|^2\\
&=|a|^2+|b|^2+|c|^2+|d|^2=1.
\end{align*}
So if we pick $\lambda=\frac{1}{\|v\|}=\frac{1}{\sqrt{|a|^2+|c|^2}}$, then $\|\lambda v\|=1$, and the above also gives $\|\frac{1}{\lambda}w\|=1$.
This now gives a valid decomposition and shows $|\psi\rangle$ is separable.
(At a higher level, what we used in this last renormalisation step is actually the fact that for tensor products of Hilbert spaces, we have
$\langle v_1\otimes w_1| v_2\otimes w_2\rangle_{H\otimes K}
=\langle v_1|v_2\rangle_H \cdot \langle w_1|w_2\rangle_K$, where $v_1,v_2 \in H$, $w_1,w_2\in K$.
In our case this gave $\|\psi\|^2=\|v\|^2\|w\|^2$.
)
Analogous decompositions hold in the case that we assume $b,c$ or $d$ nonzero instead.