The split of Germany was an early effect of the Cold War, more than a cause. Initially, all Germany was under the ultimate sovereignty of the Allied Control Council, where all four powers sat together and decisions were to be made by unanimous vote. For practical convenience, though, Germany was divided into four occupation zones, one for each of the four powers, where each given nation would have full control. It was intended that each power administer its zone separately and denazify it under the general principles and guidelines of the Allied Control Council. Eventually, Germany would be reunified under a democratic government.

Even as early as July 1945, though, friction began to appear on Allied Control Council. Initially, Russia was holding out for satisfactory reparations from Germany and Western agreement to its demands at Potsdam. Then, when the West agreed at Potsdam, France started vetoing measures to reestablish an all-German economy, protesting they hadn't been represented at Potsdam.

The real divisions began to emerge as Britain and America began reunifying their zones' governmental and economic structure. France soon joined them, turning the "Bizone" into the "Trizone," but Russia refused to let its zone join. In part it was because the Russian-sponsored Socialist Unity Party probably would have lost a free election; in part it was because Russia feared a free Germany would join the western military and economic block. On 20 March 1948, the Soviet representative to the Allied Control Council angrily demanded to be told about recent Western negotiations in London for the German economy; when the western representatives replied that they didn't know yet, he declared, "I see no sense in continuing this meeting, and I declare it adjourned."

Five days later, the Berlin blockade began.

Ever since then, representatives of the three western powers continued to regularly meet in West Berlin, leaving an empty seat for the Soviet delegation. As unanimous consent was required, no decisions were made except for West Berlin and for the Spandau prison where prisoners were confined pursuant to the Nuremburg trials. However, the Allied Control Council continued to be the nominal ultimate German authority until the Treaty on the Final Settlement with Respect to Germany was ratified in 1991.