Tori Spelling & Dean McDermott: Built on Cheating, Broke by the End, and $1.7 Million in Debt
They both cheated to be together, turned his affair into a reality show, had five kids, went broke, and ended up sharing $1.7 million in debt
Key Facts
What Happened
Tori Spelling, daughter of legendary television producer Aaron Spelling, and Canadian actor Dean McDermott began their relationship through mutual infidelity. In 2005, while filming a Lifetime movie together, both were married to other people — Spelling to Charlie Shanian and McDermott to Mary Jo Eustace. They left their respective spouses and married in May 2006 in Fiji. The relationship that began with betrayal would ultimately be defined by it.
The couple had five children together — Liam, Stella, Hattie, Finn, and Beau — and attempted to monetize every aspect of their lives through reality television. When McDermott's affair with a younger woman was exposed in 2013, instead of divorcing, they turned the crisis into a reality show called 'True Tori,' which documented their attempt at reconciliation. The show lasted two seasons and was widely criticized for exploiting personal pain for ratings.
Behind the cameras, the family's finances were in catastrophic decline. Despite Spelling's famous surname, her father's $600 million estate went almost entirely to her mother, Candy Spelling, leaving Tori with a reported $800,000 inheritance. The couple burned through that and more. Divorce documents filed in 2024 revealed the full extent of the damage: approximately $1.2 million owed to the IRS, $500,000 in unpaid California state taxes, $37,000 to American Express, and additional undisclosed debt to City National Bank — totaling $1.7 million. Spelling reported earnings of $3,000 to $75,000 per month 'depending on the job,' while McDermott earned approximately $3,800 per month.
The couple separated in June 2023, and Spelling filed for divorce in March 2024. In a surprising turn, the settlement was amicable: neither party would pay support, and they agreed to work together to pay down the $1.7 million tax debt, splitting it evenly. They share custody of all five children. Spelling described the process as having 'absolutely no problems' and called it 'a testament to the two of us wanting to step up and be there for the five humans we chose to create out of love.' The Spelling-McDermott divorce is a rare example of two people who had nothing left to fight over finding grace in the wreckage — and a stark reminder that a famous last name does not guarantee financial security.
Legal Breakdown: Bankruptcy & Divorce
Dividing Debt, Not Assets
When a divorcing couple has more debt than assets, the focus shifts from dividing property to allocating liabilities. In California, community debts incurred during the marriage are divided equally, just like community property. The Spelling-McDermott agreement to split the $1.7 million tax debt 50/50 is consistent with California community property law, though courts have discretion to assign more debt to the higher-earning spouse if the split would be inequitable.
Tax Debt in Divorce
IRS debt does not disappear in divorce. The IRS can pursue either spouse for the full amount of jointly filed tax returns, regardless of what the divorce decree says. Spelling and McDermott's agreement to split the debt is binding between them, but the IRS is not a party to the divorce and can collect from either spouse. Installment agreements and Offers in Compromise are options for managing large tax debts.
No-Support Agreements
The couple's agreement that neither party would pay spousal or child support is unusual, particularly with five children. This works when both parties' income is comparable and custody is truly shared 50/50. However, no-support agreements can be modified if circumstances change — if one parent's income increases significantly or the other loses employment, either party can petition for modification.
What This Means for Your Divorce
- →A famous family name means nothing without financial literacy. Spelling inherited relatively little and the couple spent beyond their means for years.
- →Tax debt is one of the most dangerous forms of marital debt because the IRS can collect from either spouse regardless of the divorce agreement. Include IRS installment plans in your divorce strategy.
- →An amicable divorce is possible even after infidelity and financial ruin — but it requires both parties to accept reality and prioritize the children.
- →If you and your spouse have variable or entertainment-industry income, build financial reserves. A month earning $75,000 followed by months earning $3,000 creates a false sense of security.
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This article is based on publicly available court records, news reports, and legal analysis. It is provided for educational purposes only and does not constitute legal advice. No attorney-client relationship is created by reading this content.
Divorce laws vary by jurisdiction. Always consult a licensed attorney in your area before making legal decisions.