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A marital settlement agreement is a divorce contract that outlines the division of property, liabilities, alimony, and child support arrangements prior to filing for divorce and seeking court approval. This video discusses the purpose of marital settlement agreements and where to find an official free template. It emphasizes the importance of negotiating divorce terms before obtaining a divorce decree. Couples should mutually agree on asset and support distribution and follow best practices, which include consulting a divorce attorney to ensure fair and uncontested terms, gathering financial information (like tax returns, assets, liabilities, and income), and scheduling meetings with each spouse.