The mother of the actor's eldest child is suing him for breach of contract and fraud, according to reports.
Christina Fulton, mother of 18-year-old Weston, has claimed that she has become entangled in Cage's financial woes and is $1.2 million in debt herself as a result.
According to People magazine, a law suit has been filed against the Oscar winner Cage, 43, for $13 million in damages.
The star's attorney, Marty Singer, told People magazine: "This lawsuit is ridiculous and absurd. Nicolas Cage has given her approximately $3 million every year for many years, even though he was only obligated to pay her $6,000 a month in child support.
We expect this lawsuit to be promptly thrown out."
Cage recently reported he was in financial difficulty, owing $6.3 million (£3.9m) in unpaid taxes and had started to sell off cars and property to recover his losses.