We study the magnetic structure of the ground state of an itinerant Fermi
system of spin-\nicefrac{1}{2} particles with magnetic dipole-dipole
interactions. We show that, quite generally, the spin state of particles depend
on its momentum, i.e., spin and orbital degrees of freedom are entangled and
taken separately are not good'' quantum numbers. Specifically, we consider a uniform system with non-zero magnetization at zero temperature. Assuming the magnetization is along $z$-axis, the quantum spin states are $\v{k}$-dependent linear combinations of eigenstates of the $\sigma_z$ Pauli matrix. This leads to novel spin structures in \textit{momentum space} and to the fact that the Fermi surfaces for up’’ and ``down’’ spins are not well defined. The system
still has a cylindrical axis of symmetry along the magnetization axis. We also
show that the self energy has a universal structure which we determine based on
the symmetries of the dipolar interaction and we explicitly calculated it in
the Hartree-Fock approximation. We show that the bare magnetic moment of
particles is renormalized due to particle-particle interactions and we give
order of magnitude estimates of this renormalization effect. We estimate that
the above mentioned dipolar effects are small but we discuss possible scenarios
where this physics may be realized in future experiments.

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