Christina Fulton, the mother of Nicolas Cage's eldest child Weston, is suing the actor for fraud and breach of contract.
The 42-year-old claims she has been caught up in the National Treasure star's financial woes and is now more than $1.2million in debt herself.
Nicolas, who currently owes $6.3 million in taxes, began selling properties and cars in October to recoup his losses.
His ex-wife has revealed he presented her with a 60-day notice to vacate her LA home which she believed was in her name, but is in fact owned by actor.
"This lawsuit is ridiculous and absurd," the star's attorney says.
"Nicolas has given her approximately three million every year for many years, even though he was only obligated to pay her six thousand a month in child support. We expect this lawsuit to be promptly thrown out."
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