non-married couple separating after 20yrs, how best to setup "alimony"
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.