The set three opener begins with Andre returning to Ribbon Heights with Guy. He and Kendra then work out a custody agreement and their divorce becomes final. Derek's place becomes too crowded, eventually he pops and tells Floyd to make-up with Gillian and for gregg and Max to start looking for a place. Floyd goes to see Gillian who tells him that she just needs some more time alone with her mother, and they their separation needs t be longer. Floyd then asks Steven and Norma if he can stay with them. They allow him to stay with them and he and Marie then share a room. Wendy has moved on with her life and is putting her heart-break behind her. She vows not to date for a while but then meets the charming, Ambrose Charles.
It is revealed that May had accepted Kline's proposal and the two eloped that night. They then refer to her as May Urschel, she corrects them and tells them her name is now May Haller-Urschel. Agnes goes to see Gregg since he "came-out" he tells her he was sorry for stringing her along, she then tells him that she suspected it all along, and there's nothing to be sorry about. Floyd then recieves a startling call from Gillian, apparently she almost drown in the community pool. Floyd then begins to suspect her mother, Cybill.
Kendra and Andre then officially become a divorced couple. Kendra then goes for a walk in town and runs into the depressed Derek the two comfort each other. Then out of nowhere they share a passionate kiss. Max then tells Gregg he still has two people to tell, his parents. Gregg then invites Bernard and Reno to come down again for a visit, so he can tell them that he is gay. Tragedy strikes the people of Ribbon Heights once againas Agnes awakes the next day to discover that Jack has passed away, leaveing her a widow and single mother. A funeral is held for Jack and Ruth returns along with her sister, Elsa. Ruth then meets her grand-son and comforts her daughter about her divorce, she and Derek then exchange a flirty look.