PDA

View Full Version : non-married couple separating after 20yrs, how best to setup "alimony"


Sykes
Sep 30, 2022, 10:09 AM
Hi,

I am separating from my partner of 20 years. I understand that I have no legal obligation to provide for my partner since my state does not recognize common law marriage, but I would like to get them set up as my income is higher than theirs.

I have two goals

1. that my help can be used by a bank when determining the loan amount for my partner's mortgage, and:
2. there are no taxes on the help I give

- I have no problem having a contract drawn up, which the bank could use as proof of income, but I understand that would be taxable.
- I could just give them gifts, but gifts would more than likely not be seen as income by a lender.

I'm not sure if I have other options. Could I set up a trust? I assume there would be significant costs involved with a Trust though.

Do I have any options? Or does the IRS see separation payments as alimony, which I understand is not taxable?

Sorry for the question that touches on legal, mortgage, and taxes.

Thank you for any insight.

AtlantaTaxExpert
Oct 7, 2022, 02:42 PM
This is more a LEGAL question than a tax question, so I suggest you post this question in the LAW portion of AskMeHelpDesk.