Tori Spelling, Dean McDermott hit with staggering 7-figure tax debt in divorce settlement

Show summary Hide summary

Tori Spelling and Dean McDermott’s divorce filings exposed a mountain of unpaid bills, including a seven-figure tax shortfall that reshapes the public view of the former couple’s finances. Court documents made part of the final judgment reveal the scale of liabilities and how officials and the ex-spouses plan to split them.

How much they owe: tax liabilities at the center

Official papers show the pair carry more than $1.7 million in back taxes. The bulk of that obligation is federal.

  • $1.2 million owed to the Internal Revenue Service, per the court documents.
  • More than $500,000 owed to the California Franchise Tax Board.

The divorce judgment specifies each will be on the hook for at least $600,000 of the IRS balance. The state tax debt will be divided equally between them.

Other creditors and outstanding loans

Beyond federal and state tax claims, court records list several additional debts. These include credit-card balances, private loans and unpaid medical bills.

  • $37,000 due to American Express.
  • A long-running bank loan that grew into nearly $400,000 with City National Bank.
  • Tori Spelling listed multiple personal obligations: $288,000 to one private lender, $69,000 to another, and $10,228 in uninsured medical expenses.
  • Dean McDermott’s non-tax debts include a $22,000 student loan and $20,609 in medical bills without insurance coverage.

What the filed income reports say

Financial declarations filed during the divorce paint a picture of uneven and fluctuating earnings for both parties.

  • McDermott reported that Spelling’s monthly income ranges widely, from about $3,000 to as much as $75,000, depending on work.
  • He stated his own monthly take-home is roughly $3,800.

McDermott attributed much of his reduced cash flow to industry-wide shifts, including the SAG-AFTRA strikes and fewer acting and producing gigs.

Divorce timeline and family arrangements

The split began publicly in mid-2023. The couple separated in June, and divorce proceedings followed months later.

  • The divorce was formally filed nine months after their separation.
  • Legal paperwork recently finalized the divorce and outlined custody and asset divisions.

Their five children were noted in filings by age: Liam, 18; Stella, 17; Hattie, 14; Finn, 13; and Beau, 8. McDermott is also father to Jack, 27, from a previous relationship with Mary Jo Eustace.

Responses and next steps from the parties

Requests for comment to representatives of both Spelling and McDermott were not immediately answered.

The court order lays out how tax responsibilities and other liabilities will be shared, but it leaves open how the debts will be paid down. Legal and financial advisers often recommend negotiating with creditors, assessing payment plans and, where appropriate, seeking tax counsel to address past-due liabilities.

Give your feedback

Be the first to rate this post
or leave a detailed review



Caroline Progress is an independent media. Support us by adding us to your Google News favorites:

Post a comment

Publish a comment