In this paper a single-shot digital holographic set-up with two orthogonally polarized reference beams is proposed to achieve rapid acquisition of Magneto-Optical Kerr Effect images. Principles of the method and the background theory for dynamic state of polarization measurement by use of digital holography are presented. This system has no mechanically moving elements or active elements for polarization control and modulation. An object beam is combined with two reference beams at different off-axis angles and is guided to a detector. Then two complex fields (interference terms) representing two orthogonal polarizations are recorded in a single frame simultaneously. Thereafter the complex fields are numerically reconstructed and carrier frequency calibration is done to remove aberrations introduced in multiplexed digital holographic recordings. From the numerical values of amplitude and phase, a real time quantitative analysis of the polarization state is possible by use of Jones vectors. The technique is demonstrated on a magnetic sample that is a lithographically patterned magnetic microstructure consisting of thin permalloy parallel stripes.