As RadarOnline.com exclusively reported, The Real Housewives of New York star's husband Alexandre and children Victoria, 23, and Noel, 21, filed a lawsuit against Luann over violating their divorce agreement.
Luann took possession of their Bridgehampton, New York mansion in the divorce. She was supposed to set up a trust where the adult children would be funded with half the interest in the home, but she never did.
The parties claim she sold the Bridgehampton home for $8 million in 2014 and bought the Sag Harbor house for over $3 million, leaving $5 million.
The court papers claim she has "threatened" to sell the Sag Harbor house "so that she may purchase, for herself, a luxury home in upstate New York." The home is now off the market.
The Count and children are asking a judge to block Luann from either offloading or getting a loan on the property.
"A group of young girls at the house all stated 'Luann was not there and should be back on Tuesday,'" the court papers read.
Luann has 20 days to respond to the complaint. She has hired an attorney.
The legal trouble began for the reality star when she was arrested on Christmas Eve day in Palm Beach, Florida for allegedly attacking a police officer while under the influence of alcohol.
She checked into rehab shortly after the arrest and maintained her sobriety while filming the most recent season of RHONY.
In her first post-rehab interview with Megyn Kelly on Today, she admitted to relapsing after learning about the lawsuit.
"First of all, I found out about this whole story that I was getting sued in the press so that was devastating," she said. "I felt betrayed."
She admitted to starting with "two or three" watermelon martinis before downing bottles of rose and "probably a six pack of beer."
"I can't have one drink," she admitted. "I was still dancing in my kitchen with a bikini on and a Panama hat."
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