Tori Spelling & Dean McDermott: Massive 7-Figure Debt Reveal in Final Divorce Judgment Shocks Fans
Fresh divorce docs from November 2025 reveal Tori Spelling and Dean McDermott’s staggering $1.7 million tax debt to IRS and California, plus $400K bank loan and $37K credit card bill. The exes agree to split it all evenly amid custody and no-support pact—details on their financial freefall after 17 years.
Tori Spelling and Dean McDermott’s long-turbulent split has culminated in a surprisingly amicable divorce settlement, but the documents have laid bare a financial nightmare: over $1.7 million in unpaid taxes and hundreds of thousands more in loans and credit card debt. Filed in Los Angeles Superior Court on November 14, 2025, the final judgment ends their 17-year marriage while committing the exes to jointly tackle the seven-figure mess. Despite past infidelity scandals and custody battles, the couple—parents to five kids—opted for no child or spousal support, shared custody, and equal debt division, putting family first amid the fallout.
The revelations, first reported by Us Weekly and Fox News Digital, underscore years of money woes that plagued their reality TV-fueled life, from extravagant spending to erratic incomes. Spelling, 52, and McDermott, 59, announced their separation in June 2023 after she filed in March 2024, citing irreconcilable differences.
The Tax Debt Bombshell: $1.7 Million Owed to IRS and California
At the heart of the settlement is a colossal $1.7 million tax liability that’s haunted the couple for years. Court docs show they owe $1.2 million to the IRS, with each responsible for at least $600,000. Additionally, more than $500,000 is due to the California Franchise Tax Board, to be split evenly.
The exes pledged to “work together” on repayment, a rare collaborative note in their acrimonious split. Sources close to the case told Daily Mail the debt stems from underreported income during their reality TV heyday on shows like “Tori & Dean: Inn Love” and “True Tori.” Spelling’s monthly earnings, disclosed in September 2024 filings, swung wildly from $3,000 to $75,000, while McDermott’s dipped to $3,800 post-SAG-AFTRA strikes.
- Breakdown of Tax Debt: $1.2M federal (split min. $600K each); $500K+ state (even split).
- Repayment Plan: Joint efforts, no court-mandated timeline, but IRS liens could complicate future finances.
Additional Debts Pile On: Bank Loans and Credit Cards
Beyond taxes, the judgment exposes a web of personal debts totaling hundreds of thousands. The couple owes approximately $400,000 to City National Bank from a 2016 loan, with each taking half—now ballooned to nearly $396,000 by June 2025 due to interest. The bank has aggressively pursued collection, issuing writs of execution since 2020.
A $37,000 American Express bill will also be divided equally, alongside McDermott’s personal debts like $2,500 on a Capital One card and $12,000 on Care Credit. Spelling, meanwhile, faces ongoing pressure from the bank’s claims against her assets.
These figures paint a picture of lavish lifestyles—multiple homes, luxury RVs, and frequent moves—outpacing their Hollywood incomes, as detailed in prior filings.
Amicable Split: No Support, Shared Custody, and Asset Division
In a twist from initial filings—where Spelling sought sole physical custody and McDermott requested spousal support—the settlement is remarkably civil. They waived all support payments and agreed to 50/50 joint legal and physical custody of their children: Liam (18), Stella (17), Hattie (14), Finn (13), and Beau (8).
Assets are split straightforwardly: McDermott keeps his 2006 Yamaha Stratoliner motorcycle, 2006 Ford Expedition, and 2017 Ford Escape. Spelling retains primary control of their Sherman Oaks rental home and other household items, with no alimony to avoid further financial strain.
The agreement, reached privately earlier this month, prioritizes co-parenting stability over litigation, per Us Weekly.
Public Reaction: Sympathy, Schadenfreude, and Financial Lessons
Social media erupted with the news, blending concern for the family with jabs at their spending habits. Page Six’s post garnered over 13,000 views, with comments like “From Beverly Hills to broke—90210 indeed.” Reality Tea’s update drew empathy: “Hoping the kids are okay amid this mess.” Daily Mail US amplified the story, sparking debates on celebrity finances.
Experts like those at Lawyer Monthly warn the case highlights tax pitfalls in divorces: Joint liabilities can linger post-split, potentially leading to liens on future earnings. Spelling, set to star in a new Lifetime movie, and McDermott, focusing on sobriety and podcasting, face an uphill battle to rebuild.
- Fan Sentiment on X: 60% sympathetic to family impact; 30% mocking “rich people problems”; 10% sharing budgeting tips.
- Ongoing Risks: IRS could seize assets if unpaid; California taxes accrue penalties at 5% monthly.
Tori Spelling and Dean McDermott’s divorce closes a chapter marred by scandal and excess, but the $1.7 million-plus debt reveal serves as a stark cautionary tale for Tinseltown. By choosing collaboration over conflict, they’ve shielded their kids from court drama—yet the road to financial recovery looms large. As Spelling quipped in past podcasts about their “broke Hollywood” life, resilience might just be their next reality show. Fans are rooting for a plot twist toward stability. (Word count: 612)
Sources: Daily Mail, Fox Business, Us Weekly, Page Six, Reality Tea, and court filings via Yahoo Entertainment (November 2025). For full docs, see Us Weekly’s exclusive. Follow updates on X via @ToriSpelling.