Tallulah Willis, who recently admitted she ''struggled'' with body dysmorphia and an eating disorder when she was younger, reportedly entered The Meadows facility in Arizona late last month after her famous parents insisted she sought help.
A source said: ''Tallulah was pretty much given an ultimatum. Her parents were about to take away everything from her.''
According to the insider, 20-year-old Tallulah - who is rumoured to be being treated for cocaine and alcohol abuse - was ''adversely affected'' by her parents' divorce and and another source claimed she struggled when Demi checked into rehab for ''stress and exhaustion'' in 2012.
The source said: ''When Demi was hospitalised, Tallulah didn't show up to school for days because she was too embarrassed.
''She was very open about Demi's issues and would sort of imply, 'Of course I have issues too, look at my mom.' ''
The fashion blogger's parents - who also have daughters Scout, 23, and Rumer, 25 - are said to have taken different stances on their youngest child's issues.
The source explained to People magazine: ''If Bruce suspected that Tallulah had any kind of substance abuse problem, he would have demanded for her to get help.
''Demi's take is that Tallulah is still very young and trying to find herself.''
Demi and Bruce, who also have daughter split in 1998 after 11 years of marriage.
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