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In this video tutorial, Matthew creates a pet custody agreement using legal templates. To begin, viewers are directed to the link provided in the video description to access the templates. The process involves filling out information about the first and second owners of the pet, as well as details about the pet such as name, breed, and description. Additional sections include custody arrangements, pet insurance, and responsibility for expenses. Viewers can customize the agreement based on their specific situation by selecting their state and including as many pets as needed.