How do I cut out a curved section out of a part of my image?

[ShinehahGnolaum]

I would like to image below to look like this picture I drew. I would like the image of the person on the right-hand side look like he's behind the other person, with space in between them so that the images don't blend together into one object. How would I do that if I have an image of the one person by itself to make the composite image.

[ScooterD76 · Accepted solution]

Apply a stroke to (a copy of) the top layer to the desired width, rasterize that layer and use it to cut the one behind