At WOAK, Kim meets with Brad and Katie in her office. She offers her sympathy on their loss, and realizes what a strain that's been on their marriage. Kim pointedly tells them she's ignoring the gossip flying around the station, and expects them to be professionals on the set of Oakdale Now. When Brad starts to protest there's no way he's working with Katie, Kim shuts him up by reminding him he's under contract. Anyone who breaches their contract will get their fanny sued off before she's done with them. As they exit, Katie tries to apologize for her outburst at Donovan's on New Year's Eve. Brad tells her to get used to seeing him around town having fun because he's made it his New Year's resolution, in addition to divorcing her as quickly as possible. As he walks off, he loudly asks Jimmy, the new intern, if he knows where Carly is.

The assistant district attorney meets with Rosanna and Paul and tells them that there's no way that they're going to spend time on Craig's case. Since he's still legally Cabot's adoptive father and there's no hard evidence that says Craig was harming the child, the case will be thrown out. Meanwhile, Margo reluctantly lets her brother out of his cell and sighs that she'll probably see him back around these parts sooner or later. Paul's furious after the meeting with the A.D.A. and confronts Craig at the Lakeview, demanding he sign over his rights to Cabot immediately. Craig snaps back and Lisa interferes, helping avoid a brawl between the two men. Later, Craig overhears a realtor stating that Fairwinds is close to foreclosure. He makes his way over to the estate and tells Rosanna that he knows her payments on the estate have been lack because of her exhaustive search efforts for Cabot. He agrees to foot the bill and get her out of her financial troubles, with the exception that she share custody of Cabot with him. Rosanna refuses, but when Cabot won't stop crying, Craig is the one able to soothe him. Reluctantly, she agrees to think it over and brings it up to Paul. Paul blows up and scolds her for even letting the thought cross her mind. Hurt, Rosanna lashes back that he has no say-so in the matter and asks him to leave.

Barging into Carly's office, Brad vents about Kim's expectations for him to just suck it up and work with his soon-to-be ex. Carly gives him no sympathy, telling him he's lucky Katie hasn't made it her mission to send him to jail. Brad scoffs; Katie's gonna wish for jail by the time he's through with her. He's got an appointment with a divorce lawyer, and he's suing for alimony. Carly laughs, until she realizes he's serious.

Margo returns home and meets Lyla at the front door. She heard Craig had been released and was hoping he would be stopping by later. The two discuss Craig's knack for always getting himself into trouble, but Lyla surprisingly has hope that he's a different man now. Margo smirks that Craig never changes. Katie comes in, fuming over her meeting with Kim and Brad. She hisses that she thinks Carly is behind Brad's sudden attitude change and promises to take it up with the old plug the first time she gets the chance. Later, Lyla meets Casey and Gwen while they shop for Hallie some new clothes. She comments what a cute couple they make, causing both to blush and fumble for words to change the subject. After dropping off Gwen, Casey seems upbeat. When he arrives at his apartment though, he gets a letter from Sofie. Meanwhile, Lyla arrives at Oakdale Memorial for her check-up and gets devastating news from Michael that her cancer has returned.

Carly's about to sit down to dinner with the kids, when someone rings the bell. Coach Donnelly's on the porch, holding Parker's cellphone he forgot at the rink. Parker thanks him profusely, and Carly ends up inviting him to stay and eat with them. He accepts, provided they start calling him "Mac", and not "Coach". Off the ice, at least. He regales them with stories of his days playing semi-pro hockey, making everyone laugh. When they say goodnight, Carly realizes there's no car outside, and offers to call Mac a cab. He says that's not necessary. He's rented the house at the end of the block.

Holden helps calm Lily as she still tries to process that her mother had a past that she never knew about. She knows there's more to the story, but doubts Lucinda will ever spill. Holden brings up the sore subject of Craig and Lily groans that she was just helping a friend. Later, Lily sneaks out when Craig calls her. He recalls that he hired Rohan back in Barbados, but only to throw them off of his tracks. He appreciated Lily looking for him, but wasn't sure if James was following them. Disappointed that he didn't trust her enough to let her know he was okay, Craig smirks that that's why he left his watch. Smiling, she digs for the watch in her purse and hands it back to him. He tells her to keep it...as a souvenir.

Parker finds a video message from Jack in his inbox. He wishes all of them a happy new year, and tells them how much he misses them. He promises to keep in touch the best he can, but his job is keeping him on the move. After the kids are in bed, Carly checks her own account, and finds an email from Jack. It's simply a beautiful picture of Iguazu Falls. As Carly touches the screen, we see Jack in bed somewhere. He rolls over in the dark and quietly whispers... "I love you, Carly."

Alison comforts Dusty over the demise of his and Emily's engagement. Dusty gets so drunk that he needs help getting home and Alison agrees to drive. Once at the house, Dusty gets up to go in, but stumbles. Alison picks him up and he pulls her into a kiss. Remembering the hell that it caused them both last time, Alison scolds Dusty and sends him to bed. When Aaron confronts her about smelling like alcohol, she explains that she had to drive Dusty home after he got too drunk, neglecting to mention the drunken kiss. Across town, Susan agrees to let Emily stay with her for a while. She goes to Dusty's to get her things and in his drunken stupor, he mistakes her for Alison, returning to finish what they started. Upset, Emily slaps Dusty and throws a few things together before storming off, ignoring Dusty's comments that she's jumping to conclusions. Later, Emily angrily confronts Aaron and tells him that she thought he should know that Dusty and Alison slept together again.

Kim arrives on set, determined to personally oversee Brad and Katie's first day back. During the show, Brad resorts to biting sarcasm, but Katie goes out of her way to make it seem like their previous playful banter. Kim scowls at him during a commercial break, and Brad dials it down, but barely. After the show wraps, Kim leaves while they tape promos. Brad sullenly disrupts the taping, purposely stepping on Katie's lines, getting in her shot, until Katie elbows him in retaliation. As they finish the last one touting "ways to keep your new year's resolutions", Brad motions to a man in the back of the stage. With the tape still rolling, the man serves Katie with divorce papers. Stunned, Katie starts reading through them, and stops when she gets to Brad's demand for $10,000 a month in alimony. Chaos erupts as she attacks him, and two security guards have to restrain her.

Lucinda hangs up the phone with her legal team and tells Andrew to send her visitor in, knowing already who it is. Clark enters in and muses that he never thought he would see the day when he would come face to face with Mary Ellen, or should he say Lucinda, again. Lucinda informs him that she has no intentions of re-kindling the flame with him and he chuckles that the thought never crossed his mind; he's completely in love with Emma. Together, the two conclude that they must keep what happened a secret. Later, Emma's flabbergasted when Clark finally confesses that he used to be married to Lucinda. She's irate that he would keep something like that from her and accuses him of still having feelings for the Walsh dame. Furious, she kicks him out. Days later, Holden learns that Emma kicked Clark out and reiterates her sentiments that the man can't be trusted.

Carrie arranges a meeting with Barbara. She elaborates that she's had time to think about things and Barbara's interference in her personal life must come to an end. The only way for that to happen, she shrugs, is to hand in her resignation. Barbara reasons that B.R.O. is weeks away from launching a massive ad campaign and she was hoping Carrie would oversee the project. After negotiating a new salary, Carrie agrees to look after the new project but after it wraps, she's quitting. Barbara agrees to her terms. Days later, Carrie runs into Will in Old Town and he asks her not to take the kiss seriously; they got caught up in the moment. That's all. Carrie smirks that she knows that it didn't mean anything. Little does she know that it meant something to Will. Later, Will gets notice from the court that the custody hearing is fastly approaching.

Luke returns from registering at Oakdale U for the spring and finds Kevin all dressed up. Kevin reveals that his mom has come to town for a business conference and they're supposed to be meeting with her for lunch. At Mona Lisa, Gretchen Davis makes no attempts to hide her displeasure with seeing Luke and Kevin together. Luke and Gretchen engage in a war of words before he finally storms out. Kevin runs after him and convinces him that his mother's word is no good; she's the least of their concerns. The two decide to go home early and upon returning home, they spy blood on the doorknob. Luke and Kevin find Jade crying with blood on her hands. Kevin fumbles for the phone to call 911, gasping that Jade must be injured. Luke stops him. The blood isn't Jade's, he calls out. It's someone else's.