Name too similar to cousin?

My husband and I have been going back and forth on a girl name. I really love Lily Josephine and he really wants Josephine Lily.
What is holding me back from using Josephine as a first name is that our niece (that we're very close with) is named Joselyn (pronounced same as Jocelyn but just spelled with an S instead). Is this too similar?!
I just feel like my brother in law and his wife might be mad if we name our baby Josephine when they have a girl named Joselyn! Are these names too similar for cousins?