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A marital settlement agreement (MSA) is a divorce contract that outlines the distribution of property and liabilities between a couple, including alimony, child support, and custody arrangements. This agreement is typically prepared before filing for divorce to seek judicial approval. The video tutorial discusses the function of MSAs and provides guidance on where to obtain an official template for free. It emphasizes the importance of understanding how to start the divorce process and negotiate terms. Key steps include consulting a divorce attorney for fair and uncontested terms, gathering financial information (like tax returns and assets), and scheduling a meeting with each spouse.