Definition and legal classification of Wirtschaftsgeld
Wirtschaftsgeld is a legal term primarily used in social, family, and guardianship law contexts. It describes financial resources provided to a person for independently meeting their ongoing financial needs within a specified scope. The intended use of Wirtschaftsgeld is regularly tied to personal living expenses, especially for accommodation, food, hygiene, or smaller purchases.
Wirtschaftsgeld represents a form of financial allocation that is particularly significant in the context of guardianship law, prison law, social law, and family law. In addition to the actual monetary transfer, Wirtschaftsgeld often also regulates issues regarding the power of disposition and independent management, for example, in the case of persons under guardianship or recipients of social benefits.
Wirtschaftsgeld in guardianship law
Purpose and function
Within the framework of legal guardianship pursuant to §§ 1896 et seq. BGB, Wirtschaftsgeld serves the purpose of maintaining a financial scope of action for persons under guardianship. Wirtschaftsgeld is withdrawn from the income or assets of the person under guardianship and is made personally available to them to cover their daily needs. This is an essential aspect of the right to self-determination for those in need of guardianship.
Determination and supervision
The amount of Wirtschaftsgeld is determined by the personal and financial circumstances of the person under guardianship. The guardian decides the amount of Wirtschaftsgeld to be paid out within the scope of their duties, particularly in asset management. Section 1901 BGB obliges the guardian to consider the wishes and welfare of the person. Courts or supervisory authorities may issue specific guidelines on the amount in individual cases, especially if there is a risk to the necessary standard of living or of imminent misuse.
Supervision and accountability
Guardians must document the payment and use of Wirtschaftsgeld and are accountable to the guardianship court. They are required to transparently explain to what extent and for what purpose Wirtschaftsgeld was spent, if requested by the court. Improper use or embezzlement can have civil and criminal consequences.
Wirtschaftsgeld in social law
Wirtschaftsgeld in residential facilities
In social assistance law, especially in institutional settings—such as elderly or disability care—Wirtschaftsgeld is a legally protected amount (§ 27b SGB XII – pocket money). Persons accommodated in institutions are entitled to a personal cash allowance, regardless of the institution’s costs, over which they have free disposal. This ‘pocket money entitlement’ is intended to enable independent participation and small personal purchases, and is comparable to Wirtschaftsgeld.
Legal basis and calculation
The amount of Wirtschaftsgeld is set as a flat rate in social assistance law and is adjusted annually. The facility generally manages the cash allowance and distributes Wirtschaftsgeld on behalf of the authorities. Its intended use is limited to personal needs; further disposal by the facility is not permitted.
Wirtschaftsgeld in correctional law
Definition, function, and legal framework
In the area of penal institutions, Wirtschaftsgeld is the portion of inmate earnings or other income that is made available to prisoners for free use within the context of self-supplied goods and services. The relevant provisions are set out, among others, in § 47 StVollzG (Prison Act).
Administration and scope of disposal
Wirtschaftsgeld is generally credited to the inmate’s personal account within the institution. Subject to certain restrictions (e.g., disciplinary measures), inmates can independently manage this account to, for instance, make purchases at the prison canteen or finance other permissible expenses. Restrictions or suspension of Wirtschaftsgeld are only permitted under strict legal conditions.
Wirtschaftsgeld in family law
Child maintenance and pocket money
In the context of family law, the term Wirtschaftsgeld is sometimes mentioned in regard to the right to receive pocket money. Under certain circumstances, minors have an independent claim to pocket money within the law of maintenance, which may be understood as Wirtschaftsgeld to cover personal needs. The appropriate amount depends on the child’s age and the financial circumstances of those obligated to provide maintenance.
Spousal maintenance relationships
In marital relationships, Wirtschaftsgeld can be understood as a cash allocation within the framework of community of accrued gains or household money. Spouses are obliged under § 1360a BGB to mutually provide resources for running the household and for personal use, provided such autonomy is desired or indicated.
Protective mechanisms, liability, and legal protection
Dealing with abuse
Where Wirtschaftsgeld is managed by third parties (e.g., guardians or institutional staff), extensive legal safeguards against abuse, embezzlement, or unreasonable restriction apply. Legal remedies, such as involving the guardianship court or the social welfare authority, are available to those affected if necessary.
Liability issues
In the case of improper or incorrect administration of Wirtschaftsgeld—for example, through unjustified refusal or inappropriate withholding—those responsible are liable for repayment and, if applicable, damages. In the realms of legal guardianship and correctional facilities, such duties are often subject to judicial or regulatory supervision.
Tax and social security considerations
As a rule, Wirtschaftsgeld is not subject to taxation, as it constitutes funds earmarked for a specific purpose and is not taxable as income. Social security consequences arise only if Wirtschaftsgeld replaces benefits that would otherwise be subject to compulsory social security contributions, which is not usually the case.
Summary
Wirtschaftsgeld is a central term in various areas of law, primarily serving to protect the autonomy and self-determined participation of dependent or vulnerable persons. Its statutory design and management are comprehensively regulated to prevent abuse and ensure individual authority over funds. The respective legal bases vary by context, but are always guided by the principle of state welfare and individual self-determination.
Frequently asked questions
What legal provisions apply to the allocation of Wirtschaftsgeld in correctional facilities?
The allocation of Wirtschaftsgeld in correctional facilities in Germany is subject to numerous legal regulations arising from the Prison Act (StVollzG), state-specific prison laws, and other subordinate legal provisions. The fundamental provision is § 47 StVollzG, which regulates the management of prisoner assets. Wirtschaftsgeld is considered part of Eigengeld (personal funds) that prisoners can use for their personal needs – for example, purchases at the prison kiosk or for telephone calls. The administration and amount of Wirtschaftsgeld paid out are strictly regulated. Bookkeeping obligations and control mechanisms for proper fund usage must be adhered to. Allocation is generally made upon application, which must be reviewed and approved by the prison authority. Data protection provisions also apply since personal data are processed during administration. Access to Wirtschaftsgeld must not endanger the security and order of the institution, which constitutes an additional legal limitation.
Under what conditions can a prisoner receive Wirtschaftsgeld?
A prisoner generally acquires entitlement to Wirtschaftsgeld from their own income, such as wages earned inside the institution or transfers from third parties outside. Legally, only the part of their assets that is not otherwise committed—for example, for maintenance payments, savings under § 51 StVollzG, or settlement of compensation obligations—can be used as Wirtschaftsgeld. Furthermore, the institution may restrict payout of Wirtschaftsgeld if a prisoner engages in criminal or disciplinary misconduct or if the security and order of the facility would be compromised. In many federal states, there are also upper limits on the amount of Wirtschaftsgeld that may be paid out per week to avoid unequal treatment among prisoners and to maintain institutional order.
Can Wirtschaftsgeld be seized or claimed by third parties?
Wirtschaftsgeld held in a prisoner’s Eigengeld account is generally subject to the general seizure rules of the Code of Civil Procedure (§§ 850 et seq. ZPO). However, there are specific restrictions: a portion of the funds is reserved for the prisoner’s social reintegration under § 51(4) StVollzG and may not be seized. In maintenance cases, seizure may be permitted after judicial review, provided it does not endanger the prisoner’s living expenses during incarceration. The prison authority is required to legally review and implement such measures. Claims by third parties, such as creditors outside the family, are generally handled as subordinate claims.
What legal remedies are available in disputes regarding the amount or use of Wirtschaftsgeld?
In the event of a dispute, prisoners generally have administrative legal remedies available. Initially, an application can be submitted for review by the prison authority. If the request is denied, it is possible to file a legal complaint (Rechtsbeschwerde) in accordance with § 109 StVollzG at the relevant prison court. Courts then review whether the prison administration’s decision complies with applicable law, in particular the requirements of penal and administrative law, and whether it is proportionate. Decisions regarding Wirtschaftsgeld must always observe the principles of equal treatment, prohibition of arbitrariness, and prohibition of excess, as these involve substantial infringements of prisoners’ rights.
What are the supervision and documentation obligations of correctional institutions in managing Wirtschaftsgeld?
Correctional institutions are obliged to document and manage the administration of Wirtschaftsgeld in detail and transparently. Seamless bookkeeping must be ensured, recording all deposits, withdrawals, and reallocations in a way that is fully traceable. The handling of Wirtschaftsgeld is subject to both internal audits and external controls by supervisory authorities and, where applicable, state audit offices. Breaches of documentation obligations can result in disciplinary measures and, in serious cases, criminal prosecution. Data protection requirements must also be observed, particularly regarding retention periods and rights of access.
What tax aspects need to be considered with Wirtschaftsgeld?
From a tax law perspective, it should be noted that Wirtschaftsgeld itself does not usually constitute a taxable event, as it is merely a redistribution of already taxed income (e.g., wages or transfers). However, income from activities in correctional facilities—the wages from which Wirtschaftsgeld may be formed—is generally subject to tax. The correctional institution deducts wage tax, church tax, and social security contributions in accordance with legal requirements and pays them to the tax office. For external transfers, anti-money laundering regulations must be observed, particularly if the origin of the funds is unclear or there are grounds for suspicion.
May prisoners access Wirtschaftsgeld that was not paid out after release?
By law, any unused Wirtschaftsgeld remains part of the prisoner’s assets after release. Pursuant to § 50 StVollzG, the correctional institution is required to pay out all balances, including Wirtschaftsgeld, to the (former) prisoner upon release. Only through lawful measures, such as seizures, offsets with the institution’s outstanding claims, or court-ordered protective measures, may payment be refused in whole or in part. If the released person is not present in person, special rules for payout or safekeeping may apply.
