The judge said New York is not the place for Diandra Douglas' lawsuit. The two divorced in California in 2000 after 23 years of marriage.
Michael Douglas' lawyers said the actor is very pleased with the ruling.
Diandra Douglas' camp claims she should get half of her ex-husband's earnings from this year's "Wall Street: Money Never Sleeps" because their divorce deal reportedly gives her a portion of profits made from projects he worked on while they were married.
The first "Wall Street" movie was released in 1987.
The Associated Press contributed to this report.