After Ned throws her out of the house, Stacey decides to stay at Alex's house. The next day, Kirkland threatens to fire Ned and tells him to straighten out his life. Meanwhile, Eric takes Ned to a family gathering so Ned can tell Stacey his true feelings.

After throwing Stacey out, Ned goes nuts turning her room into a game room. Stacey moves in with Alex and she gets a lawyer who tells Ned that Stacey is legally entitled to her room. After an incident with Ned, Alex decides to break up Stacey. She then goes back and Ned doesn't welcome her with open arms.

Ned learns that his girlfriend is seeing someone else.

Stacey leads a revolt at Skyward Magazine when her editor insists she turn her exposition piece on polluted lakes into a fluffy nature story. Diana flies to LA and Ned starts obsessing.

With the divorce looming, Stacey is looking for an apartment. Diana offers Stacey a job as dogs body, then accuses Ned of having feelings for Stacey.

Amanda thinks there are too many cooks in the muffin shop's kitchen, so she walks out on Ned but returns after he promises to remain a silent partner.

Ned finally goes too far with Eric, and a melt-down fight may spell the end of their long friendship.

Amanda gets her fifteen minutes of fame when Ned films her in a television commercial and, fed up with the stupid premise, she explodes.

Amanda finally has a competent staff member: super efficient and cheerful high school senior Amy. Things take an ugly turn when the teenager invites Ned to attend a street festival with her, and he shows up with another woman.

Ned and Eric are going to Nepal but Eric backs out because of his fear of the unknown. He spends his time cowering. Amanda who has a friend coming to see, hires someone to take care of the muffin store. But Stacey feels insulted that she doesn't trust her. So she puts Stacey in charge and things go to hell.

A love affair between Ned and a rival advertising executive hides ulterior motives.

Ned learns that his girlfriend is seeing someone else.

Stacey leads a revolt at Skyward Magazine when her editor insists she turn her exposition piece on polluted lakes into a fluffy nature story. Diana flies to LA and Ned starts obsessing.

With the divorce looming, Stacey is looking for an apartment. Diana offers Stacey a job as dogs body, then accuses Ned of having feelings for Stacey.

Ned's agency is going on retreat to a ski resort. When Stacey finds out, she corners Ned by convincing his boss that she should come along, to give them a chance to work things out.

Stacey finally gets up the courage to tell her parents that she and Ned are getting a divorce. Ned wants to ensure he stays friends with Stacey's parents.

When the ad agency gets a new board of directors, Ned is worried. As expected they ask Ned to prove his worth by creating a campaign to sell a client's sponges.

Eric has a new boss and she wants him to help out with the annual fiscal review, just like he's always wanted. But she wants more than just his accounting expertise.

It's time to finalise the divorce. But there's still some sexual tension to resolve. While working on the paper work, Ned and Stacey find their games taking a more sexual turn.

Kirkland's son, Skip, is derailing Ned's brilliant advertising pitches. Stacey is being forced to write yet more fluff. Amanda still isn't pregnant. All of which leads to copious (attempted) muffin squashing.

Ned's been working from the office in the muffin shop, though without a lot of success. His old employer for stealing an account in the last episode is also suing him, a lot. Stacey's found a rent-controlled studio and is moving out.