You need "legal" advice, and not take the word of a WW. And, it would not be a good idea to be neighbors if you plan to separate. That arrangement may sound good, at first, but it's worse than having your in-laws next door! Separation is for distance. The closer you live, the more you see and the more advantage of you she'll take. It is in your best interest not to live close to her.
It is not about what you feel should work in your M. It is about doing the work that gets the right results. Do what works!