Presley's 8-year-old twin daughters are in protective custody while the claims are investigated.
Lisa Marie Presley claimed in court papers that her husband had "inappropriate photos" of children on his computer.
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In papers obtained by DailyMail.com, Lisa Marie claims she found “inappropriate photos of children" on the computer of musician Michael Lockwood, whom she is divorcing.
Their 8-year-old twin daughters, Finley and Harper, are now reportedly in protective custody while police investigate.
"I was shocked and horrified and sick to my stomach," she said in the court papers.
A lawyer for Lockwood told Inside Edition that his client denies the “highly sensational” claims
“It is very unfortunate and inappropriate that Ms. Presley chose to file a one-sided, inaccurate version of the facts in the Family Law Court’s publicly accessible files,” the statement said. “While Mr. Lockwood denies the truth of what Ms. Presley chose to put in the press, he has no further statement at this time.”
The couple split over the summer after 10 years of marriage.
Elvis’ daughter’s net worth was once estimated at $300 million but apparently it's been frittered away. Her dire financial situation is laid out in the just-released divorce papers.
She says she's so broke she had to move with in her oldest daughter, actress Riley Keough, the star of The Girlfriend Experience on Starz.
Read: Elvis Presley's Wife Priscilla Comes Under Scrutiny Over Wrinkle-Free Face
The 49-year-old has been married four times including to actor Nicholas Cage and Michael Jackson.
Lockwood once played in her band. He also recorded and performed with Aimee Mann and Fiona Apple.
Inside Edition has reached out to Presley for comment but has not heard back.
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