Following the amendment of the Act on the Amendment of Names and Sex Determination in Special Cases, known as the Law on Transsexuality (1981) by Judgment No. 1 BvR 3295/07 (2011) of the Federal Constitutional Court, the criteria for changing the name or both the name and the gender marker were unified. Currently, the law requires applicants to (i) prove that "due to their transsexual status, they do not feel comfortable with their sex registered at birth", (ii) they have lived for at least three years "in accordance with the gender they identify with" and (iii) that their "situation of transexuality is foreseeably stable". This procedure is carried out before a municipal judge, which has to verify that these requirements are met by subjecting the applicant to an examination carried out by two expert witnesses "specialised in transsexualism". (ILGA)

In 2017, the Federal Ministry for Family Affairs, Senior Citizens, Women and Youth (BMFSJ) commissioned the Humboldt University in Berlin to prepare an expert opinion on the "need for regulation and reform for transgender people".
It found that the current assessment procedure is in many cases characterized by disproportionate time and expense as well as degrading and discriminatory experiences and violates the fundamental rights of the applicants.

The non-governmental organization Deutsche Gesellschaft für Transidentität und Intersexualität e.V. (dgti) issues a supplemental ID card which contains one's self-chosen first names, pronouns and gender before a legal name change has taken place. It is known and accepted by German ministries, the police, and many authorities. The supplemental ID card is often a condition to correct one's name at, among others, schools, universities, banks and insurance companies. In five German states, references to the ID have been included in coronavirus ordinances and associated explanations to recognize it as an identification document, e.g., together with vaccination certificates.
It has a special status of recognition in Germany. The legal basis of the supplemental ID card is the implementation of the request of the European Parliament, communicated in the 11th legislative period of the German parliament.

When the Self-Identification law was introduced, people who went through this old process could apply for a monetary compensation.