Rachel and Adam are desperate about the adoption's agency decision regarding Laura. Pete develops first interests in his new house guest and Karen returns to work and is surprised in her new boss.

Adam is afraid about his prospects to become a father; meanwhile Rachel visits an old friend in New York. Pete and Jo are getting closer, but there is one problem; she has still a boyfriend. David is desperate to find a birthday present for Karen.

Pete is afraid of his fast moving relationship with Jo, who's visa is about to expire. Adam and Rachel start to fight about the baby's name and their relationship. Karen starts an affair, while David is occupied with work.

Karen has to make her final choice between David and Mark, while the gang is preparing to head to Australia, to celebrate Pete and Jo's wedding. Rachel is excited, because she can visit her younger sister in Sydney for the first time. Adam and Rod try to convince Pete that the wedding is a big mistake.

The group is back from Sydney and Rachel gave birth to a baby boy. Adam and Rachel try to work things out, but Rachel doesn't listen, because she only cares about the baby. David and Karen's divorce gets complicated when Karen decides that she needs a lawyer of her own. Pete's mom is moving in with the newlyweds, but first thing she does is go off and buy some cannabis.

Adam faces a life crisis, but Rachel thinks she can help him. David and Karen start to dig up dirt for their ongoing divorce. Meanwhile Ramona finally finds her love.