The widow of Elvis Presley told "Entertainment Tonight" that the couple's eight-year-old daughters, Finley and Harper, have been living with her for several months and they also see their parents.
"It’s still a very family-oriented environment for them," Presley, 71, shared. "They’ve been with me for —- it’ll be over nine months. They’re great. They’re doing wonderful. They’re living a great life. They see both their parents and we’ll see what happens."
Presley also weighed in on her daughter's claims that she is millions of dollars in debt and can't afford to pay the amount of spousal support Lockwood has requested.
"This is very personal and we’re still going through a lot of different scenarios," Presley said. "There’s been a lot of rumors, a lot of speculation, and a lot of everything, which always goes along with these situations."
In court documents originally obtained by People magazine, Lockwood is asking for $40,000 in monthly spousal support. But, Presley says her $300 million fortune is nearly all gone and that she owes millions in back taxes and credit cards and has to pay for two full-time nannies for their children when they visit with their father.
"Nothing is sorted out yet," Presley said. "Everything is trying to be sorted out and done with dignity and done with care, especially for the children."
Although allowed to live with Presley, the girls are currently under the supervision of the California Department of Children and Family Services, according to the court documents, while the Beverly Hills Police and Tennessee Bureau of Investigation investigate claims of sexual misconduct made by Lisa Marie against Lockwood.
Lockwood has not been charged with a crime and his attorney denies the claims, calling them in a statement to ABC News, "highly sensational, inaccurate and unproven."
Lisa Marie Presley, 49, and Lockwood, a guitarist and producer, married in Japan in 2006, but separated last June.
Last month, Priscilla Presley posted pictures of the girls at her home.
"There is Lots of confusion, commotion and concern from all the talk circulating," she wrote in one post. "Let me put this to rest ... the girls have not been in foster care and never will be. The girls have been with me and will be until all this is sorted out."