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In this tutorial, Matthew explains how to create a pet custody agreement using legal templates. He guides viewers to the website link provided in the video description, directing them to the "Personal and Family Forms" section, specifically under "Family Matters" where the pet custody agreement is located. Matthew outlines the steps to fill in the agreement, including entering the names and addresses of the pet owners, as well as details about the pets such as their names, breeds, and descriptions. He also mentions addressing custody, pet insurance, and other expenses, specifying which party will be responsible for each.