Jason Sudeikis Report That He's Trying to Litigate Olivia Wilde Into Debt Is 'Insane,' Source Says

The former couple continues to battle it out in court over their children.

Jason Sudeikis is not trying to litigate Olivia Wilde into debt, despite what she may claim in court via a new report, sources tell ET.

According to a Daily Mail report citing legal documents, Wilde claimed in court that Sudeikis "can afford to spin his wheels with filing after filing" and that "Olivia cannot" when it comes to their custody battle over their two children -- Otis, 8, and Daisy, 6. Wilde's lawyer, Laura Wasser, added in court documents, "Jason should not be permitted to litigate Olivia into debt, and then claim she should be deprived of her right to seek a need-based fee contribution from him."

But a source tells ET that "the fact that [Wilde is] pleading poverty after having a successful career is insane."

According to the new report, court documents were filed in advance of a custody hearing in Los Angeles over their two children. The hearing, according to the Daily Mail, was nixed at the last minute on Friday. The issue at hand is where the children should call home. Wilde contends it's California, while Sudeikis insists the children should live in New York. She also contends a California court should make the ruling, while he wants this to be settled in a New York court. A judge in New York previously ruled against Sudeikis on that legal front back in August 2022. Sudeikis filed an appeal, but according to TMZ, a judge in New York on Thursday once again rejected the request.

As for the court date on Friday, another source tells ET that "there is no new court date" and "this is nothing new." The source added, "Jason has always wanted to continue raising their children in New York, especially considering the family home that they built together is in New York."

ET reached out to Wasser, but she was not available for comment. ET has also reached out to Sudeikis' reps for comment.

In a statement to ET, a rep for Wilde says, "The sealed and private documents that were leaked today are the utmost breach of trust and never intended for public consumption. This private family matter, involving young children, has continued to be a tabloid fixture and the press coverage dating back a year has been relentless and traumatic. Olivia only continues to be focused on co-parenting her children and moving past this difficult period swiftly and drama free."

In court documents, per the Daily Mail, Wilde says there's no reason for the children to move to New York, and she underscored the point by stating that Daisy has never attended school in New York and Otis attended only one semester of kindergarten in New York in 2019.

She went on to claim that she and Sudeikis "were scheduled to start working with a family therapist in California in mid-January" and "thought things were calming down and were going to move forward in a more amicable, respectful fashion," but that she was blindsided when she learned Sudeikis "was plotting to proceed with the New York Child Support proceeding behind my back."