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    Sykes's Avatar
    Sykes Posts: 25, Reputation: 1
    New Member
     
    #1

    Sep 30, 2022, 10:09 AM
    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.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #2

    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.

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