He was born around 1404 as the eldest son of Bernard VI, Lord of Lippe and his second wife, Elisabeth of Moers.
Bernard VI died in 1415 and Simon IV inherited Lippe.
This led to a bitter feud, during which Extertal and the church and castle of Bösingfeld were destroyed.
However, Simon IV took appropriate countermeasures and in the end, he prevailed and retained Sternberg.
Around 1426, Simon IV married with Margaret (1411 – 31 October 1456), the daughter of Duke Eric I of Brunswick-Grubenhagen.