Aussonderung

Aussonderung, literally meaning separation or earmarking, is a legal and administrative concept used in German-speaking jurisdictions to describe the process of setting aside specific assets from a broader pool to protect the rights of a particular owner or beneficiary, or to fulfil statutory obligations. It denotes the removal of designated items from the general mass for a defined purpose.

In insolvency proceedings, aussonderung denotes the claimant's right to recover property that does not form part of the insolvent estate because it belongs to another person or is held on trust. Such assets are excluded from the distribution to creditors and are returned to the rightful owner. Common examples include goods under retention of title, items deposited for safekeeping, or property that remains the property of third parties.

In banking and asset custody contexts, aussonderung refers to the segregation of client assets from the institution's own property. This separation protects client property in the event of the institution’s insolvency and is often required by financial regulations to ensure that client assets cannot be claimed by the institution’s creditors.

Practically, aussonderung involves identification, tagging or marking, physical or legal segregation, and careful documentation. When rights to the segmented assets are contested, courts may determine the legitimacy or scope of the segregation. The concept underscores the distinction between assets belonging to specific owners and the general pool available to satisfy broader claims.