Friedrich Wilhelm was born out of wedlock at Neuwied, West Germany, the first child of Prince Ernst August of Lippe (1917–1990; son of Prince Julius Ernst of Lippe and Duchess Marie of Mecklenburg-Strelitz) and his wife, Christa von Arnim (b.
On 22 March 1953, he renounced his position in favour of his older half-brother, Prince Leopold.
This move proved controversial within the house and several princes started legal proceedings.
His father changed his mind, believing all princes of the house, not just those living in Germany, should be considered.
His father died in 1990 and Friedrich Wilhelm continued the claim, despite his illegitimate birth.