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In this video tutorial, Matthew guides viewers on how to create a pet custody agreement using legal templates. Viewers are directed to click on the provided link to access the templates and navigate to the personal and family forms section to find the pet custody agreement template. Users are prompted to fill in details of the first owner, second owner, pet information, custody arrangements, pet insurance, and other related expenses. Multiple pets can be included in the agreement, with users selecting the state and creating a document based on their specific needs.