In consequence Philipp Ludwig II and his younger brother, Count Albrecht, joined the Nassau-Dillenburg court, a centre of the Reformation movement in Germany and closely tied to the Electorate of the Palatinate of the Rhine.

During a wedding feast in Dillenburg that lasted from 23 October 1596 - 3 November 1596, he married Katharina Belgica, third daughter of William the Silent, producing the following children: Count Philipp Ludwig II's policies are notable for their drive of modernisation for his tiny state.

Also in the condominiums Philipp Ludwig II shared with the Archbishopric of Mainz he couldn’t change anything — whether they had become Lutheran during the reformation or had remained Roman Catholic.

The introduction of Calvinism and its location, at only half a day's journey away from Frankfurt with its trade fair, made Hanau an attractive place to settle for Calvinist refugees from France and later from the Southern Netherlands.

In 1597 and 1604, the count and the refugees entered into two treaties which gave them a large degree of self-government and founded the “New Town” of Hanau, south to the historic mediaeval settlement.