Tori Spelling and Dean McDermott Face $1.7 Million Tax Debt in Divorce

Tori Spelling and Dean McDermott are facing an overwhelming tax debt exceeding $1.7 million, a situation that has come to light following their recent divorce settlement. The couple’s financial troubles were detailed in court documents, revealing that they owe $1.2 million to the Internal Revenue Service (IRS) and over $500,000 to the California Franchise Tax Board.

Each party will be held accountable for a minimum of $600,000 of the IRS debt, while their outstanding taxes owed to the California tax authority will be divided evenly. This financial burden is compounded by additional debts, including $37,000 owed to American Express and a growing balance with City National Bank for a loan initially taken out over a decade ago, which has ballooned to nearly $400,000.

In addition to these obligations, Spelling has personal debts amounting to $288,000 owed to a private individual, $69,000 to another unidentified person, and $10,228 in uninsured medical expenses. McDermott’s financial liabilities include $22,000 from a student loan and $20,609 in his own uninsured medical bills, according to the court filings.

As part of the divorce proceedings, Spelling’s surprising monthly income has also been disclosed. In a report filed on September 5, 2023, in the Los Angeles Superior Court, McDermott stated that Spelling’s earnings fluctuate between $3,000 and $75,000, depending on her job opportunities. His own monthly earnings are noted to be $3,800, but he indicated that his financial situation has drastically changed in the past year due to the impact of the recent SAG-AFTRA strikes and shifts in the entertainment industry.

“My acting and producing work has decreased drastically,” McDermott remarked in his filing.

Spelling, aged 52, and McDermott, aged 59, announced their separation in June 2023 after 17 years of marriage, with Spelling filing for divorce nine months later. Their divorce was finalized earlier this month, with the couple reaching an agreement regarding support, asset division, and custody of their five children: son Liam, aged 18, daughter Stella, aged 17, daughter Hattie, aged 14, son Finn, aged 13, and son Beau, aged 8. McDermott also has a son, Jack, aged 27, from a previous relationship with Mary Jo Eustace.

Representatives for both Spelling and McDermott did not respond promptly to requests for comments on this matter. As their financial situation unfolds, the implications of their debts on their personal lives and obligations to their children remain to be seen.