In exchange, Augustus Louis received the enclave of Güsten with its old Schloss built in 1547 by Prince George III and the town of Warmsdorf with all its revenues, as well as other concessions.

After the death from smallpox of Leopold and his two sons in 1728, Augustus Louis inherited Anhalt-Köthen, however he soon faced disputes with his sister-in-law, the Dowager Princess Charlotte Fredericka (who sought the payment of her widow dowry), and his niece Gisela Agnes (who made claims to her father's inheritance).

In 1730 Charlotte Fredericka married Albert Wolfgang, Count of Schaumburg-Lippe, but until her death in 1785 she received the sum of 200,000 Thalers annually from Anhalt-Köthen.

Augustus Louis tried to address the fiscal problems created by obligations to his brother's family members, but without success.

The couple finally married in Dresden on 23 January 1722; this morganatic union produced only two daughters, who were recognized as princesses of Anhalt with all appertaining rights: In Sorau on 14 January 1726, a year after the death of his first wife, Augustus Louis married again to Christine Johanna Emilie (b. Sorau, 15 September 1708 - d. Köthen, 20 February 1732), daughter of Erdmann II, Count of Promnitz-Pless.