Richards, 48, alleges that Sheen, 54, “has squandered over $24,000,000 from the sale in his interest in Two and a Half Men to pay his personal debts and to support his extravagant lifestyle at the expense of support payments for his children,” according to court documents obtained by E! News.
WATCH BELOW: Charlie Sheen claims he can no longer afford child support
The Real Housewives of Beverly Hills star and Sheen share daughters 15-year-old Sam and 14-year-old Lola.
The court documents also state that “during the time frame since our last stipulation/order in 2016, he has failed to pay $450,000 in support while diverting over $600,000 in assets to adult family members and converting thousands of dollars into cash for his own personal use.”
Richards filed for divorce from Sheen in March 2005 after nearly three years of marriage. The divorce was finalized in November 2006.
Sheen denies the accusations.
In March 2016, Sheen claimed he could no longer afford to pay child support and filed for a second reduction in payment.
His second filing was almost identical to the one he put into the court system two weeks prior against another ex, Brooke Mueller.
Sheen said he’d been paying $55,000 per month to Richards — who had been getting that amount since 2009, as has Mueller — but it was too large an amount for him to cover because his “income has drastically declined.”
WATCH BELOW: Charlie Sheen files to reduce child support payments to Denise Richards
In the legal paperwork, Sheen listed his monthly expenses, which show that he had gone from making $613,000 per month to an average of $87,384 per month.
Sheen also described the reasons behind his financial woes, which included the selling off of his Two and a Half Men rights, along with mounting health-care costs due to his HIV-positive status. He claimed to spend approximately $25,000 per month on medical costs not covered by insurance.
—With files from Chris Jancelewicz