On September 9, 1379, the Treaty of Neuberg was signed, dividing the Habsburg domains between the brothers Albert III and Leopold III. Albert retained the title of Duke of Austria and ruled over the core lands, while Leopold received the outlying territories in Styria, Carinthia, and Tyrol. This division weakened the Habsburgs' central authority for decades and laid the groundwork for future conflicts, but it also fostered regional identities that would shape the cultural landscape of Central Europe.

The Treaty of Neuberg and the subsequent division of Habsburg lands were commemorated in Austrian chronicles and poetry that reflected on the benefits and dangers of dynastic division. The event contributed to the development of distinct regional literary traditions in the Habsburg domains, including the flourishing of Middle High German poetry in Austria and the early vernacular literature of the Alpine regions. The treaty's legacy can be traced in the later works of Austrian poets, who often engaged with themes of Habsburg history and the complex interplay of unity and diversity in the empire.