Lisa Marie Presley's twin daughters have been placed in the care of California's Department of Children and Family Services (DCFS).
Finley and Harper Lockwood, eight, have reportedly been removed from the family home by social workers, and a trial date has been set for March (17) to determine their future, Presley alleged in court papers filed as part of her divorce from Lockwood, after she claimed to have found indecent photos and videos of children on their father's computer.
The 49-year-old daughter said of the discovery in the court papers: "I was shocked and horrified and sick to my stomach".
She continued to reveal that police raided her former home with Lockwood and discovered 80 of his devices, but these have yet to be fully analysed.
"My understanding is that Tennessee law enforcement is also conducting an investigation related to the photos and videos that I discovered," she said in the documents, obtained by Daily Mail Online.
"I have no idea what else may be on those devices and fear that there are more and worse images and evidence in these un-analysed devices."
Presley and 55-year-old musician Lockwood married in 2006, with the singer filing for divorce last June (16), citing irreconcilable differences.
She added in the papers that she has to pay for two nannies to accompany Lockwood as monitors when he visits his daughters.
This is the latest development in the battle between Presley and Lockwood over their divorce, with money being another major issue.
Previous court documents saw Lockwood ask for $40,000 (£32,800)-a-month in spousal support, and for Presley to pay $100,000 (£82,000) towards his legal fees.
He alleged his money requests are nothing compared to what Presley spends on a regular basis, claiming she receives a $100,000 monthly allowance from her father's estate, and often blows $20,000 (£16,400) at a time on shopping sprees.
However, in the new documents filed, Presley claims her $300 million (£241 million) fortune has gone, and she has been forced to move in with her actress daughter Riley Keough.