500' separation is fine is most cases. But I was on a 262 heading and the 737 was on a 18 heading. I was at 8500' he was descending and the controller made him hold at 9000'. The controller crossed him over and in front of me to the point I pulled the power and diverted to avoid any possible wake turbulence. AC-90-23G states: "Flight tests have shown that at higher altitude the vortices from large aircraft sink at a rate of several hundred feet per minute (fpm), slowing their descent and diminishing in strength with time and distance behind the wake-generating aircraft."
https://www.faa.gov/documentLibrary/media/Advisory_Circular/AC_90-23G.pdf
14 CFR 91.113- Converging. When
aircraft of the same category are converging at approximately the same altitude (except head-on, or nearly so), the
aircraft to the other's right has the right-of-way.
I remember vividly this accident report of a Saratoga that crossed under a 737 causing the wings to be ripped off.
https://aviation-safety.net/wikibase/44106
With wake turbulence concerns, is less than 500' separation over my flight path directly in front of my nose good controller work? Should the 737 have altered course to overfly me or pass behind me? This was not in busy airspace nor was the 737 on an approach path at that point.