Tori Spelling and Dean McDermott Face $1.7 Million Tax Debt

Tori Spelling and Dean McDermott are facing a substantial tax debt exceeding $1.7 million, which has come to light amid their recent divorce proceedings. Court documents reveal that the former couple owes approximately $1.2 million to the Internal Revenue Service (IRS) and over $500,000 to the California Franchise Tax Board. The final judgment filed in their divorce details the extent of their financial obligations.

Both Spelling and McDermott will each be responsible for at least $600,000 of the IRS debt. The unpaid taxes owed to the California Franchise Tax Board will be divided equally between them. Beyond their tax liabilities, the couple also owes $37,000 to American Express and have a significant outstanding balance with City National Bank related to an unpaid six-figure loan that has ballooned to nearly $400,000 over the past decade.

The financial challenges do not end there. Spelling faces additional debts, including $288,000 owed to a private individual, $69,000 to another unidentified creditor, and $10,228 in uninsured medical expenses. McDermott, for his part, has accrued $22,000 in student loan debt and $20,609 in his own uninsured medical bills, as outlined in the court documents.

In a court filing dated September 5, 2023, in Los Angeles Superior Court, McDermott provided insight into the couple’s financial situation. He claimed that Spelling’s monthly income fluctuates between $3,000 and $75,000, depending on her assignments. McDermott himself reported earnings of $3,800 per month, noting a significant decline in his financial circumstances over the past year due to the SAG-AFTRA strikes and changes within the entertainment industry. He stated, “My acting and producing work has decreased drastically.”

The couple, who announced their separation in June 2023 after 17 years of marriage, finalized their divorce earlier this month. Spelling’s court documents indicate that they have reached agreements regarding support, asset division, and custody arrangements for their five children: son Liam, 18, daughter Stella, 17, daughter Hattie, 14, son Finn, 13, and son Beau, 8. Additionally, McDermott has a son, Jack, 27, from a previous relationship with Mary Jo Eustace.

As Spelling and McDermott navigate their financial challenges alongside their personal separation, the impact of their significant debt will likely continue to unfold in the coming months. Both parties have yet to publicly comment on the latest developments in their financial situation.