Help Request - How to Control Overlapping Areas on 2-D Sprite in Orthographic Top Down?

Hey all, hope you’re doing well. I’m working on building a top down orthographic 2-d game using the 3-d 3rd person template. Currently, what I’m trying to figure out is there a way to control/map sprite overlap on for the player character, in relation to the objects in it’s surroundings? Here’s an image w/ notes for some clarification -
Basically the teal and magenta boxes are stand-ins for furniture, the magenta being a cabinet and the teal being a bed. I was able to work in some really simple collision(second image set) by using an invisible collision plane, so at least now it feels like the object is taking up space.
The issue now though(first image set), is that though the character won’t “walk through” the furniture, the furniture isn’t overlapping correctly, so she doesn’t look like she’s standing behind the bed when she’s suppose to.
My big question is, what’s the best way to map/control where a sprite will overlap the player character(the yellow highlighted areas), so it will look like the character is standing behind the cabinet/bed?
Any sort of advice/tutorials will be greatly appreciated, thanks in advance!