In 1992, the Schmiedeleut branch of the Hutterian Brethren split into two groups.  These groups are Group 1 under the eldership of Jake Kleinsasser and Group 2, which has a committee of elders.  The split occurred when a faction within the Church unsuccessfully tried to remove Elder Jacob Kleinsasser from the eldership of the Schmiedeleut, citing various alleged offences against him.  Their attempt to remove him caused the church to split into two with some supporting the original elder and others supporting group 2.

The allegations against the elder ranged from misuse of church funds to  disagreement over church decisions among others.  Many of these allegations are chronicled in a alleged fraudulent book, pieced together by a Donald Gibb. (Although this book was often cited as evidence of the misuse of Church funds, several senior group 2 ministers have since shown lukewarm to no support for that particular document.)

As part of the attempt to remove the elder, the Group 2 Hutterites created a new Church Constitution which most of them endorsed and signed.  (A church constitution was put in place in 1951 to provide a single voice for all Hutterites when dealing with different governmental departments.)  This new constitution, some argue, essentially formed a new church, different from the original Hutterian Church under Kleinsasser's eldership which retained the original 1951 Church Constitution.  Group 2, after adopting their new Church constitution, assigned a committee of elders to look after their own church affairs.   

In their bid to remove the elder, Group 2 (the faction that was opposed to J. Kleinsasser eldership) initially attempted to legally ban any Hutterites, who didn't join their group, from calling themselves "Hutterite" or using the name "Hutterian Brethren" to describe their church.  Group 2 members support that particular stance by suggesting that they had to do that in order to protect themselves from being excommunicated.  Further, they believe they had to gain control of the church name in order to apply for registrations to perform marriages.  However, the extent to which they took this was excessive and other more appealing solutions were eventually considered.  Fortunately, the two sides were able to reconcile this particular point, and as a result, the Group 2 Hutterites ceased all legal proceedings relating to name use.  Today both groups continue to call themselves Hutterites and members of the Hutterian Brethren Church. 

The two groups have been in disunity ever since.