Julia packs her bags and leaves to Stanford, while Bailey has to take off Claudia away to Massachusetts to boarding school. Meanwhile, Charlie drives Daphne crazy with his over-protectivness. Sarah and Bailey go to check out the new loft apartment. Daphne leaves.

Sarah receives a terrible news – her parents have separated. Claudia feels like a nerd in the school, but as time passes she realizes that being smart is not a bad thing after all. Charlie goes to a lawyer to ask about parental rights during the fact that Daphne has returned and ends up with a new job. Julia realizes she has feelings for Josh.

Charlie and Daphne make peace between each other and Daphne confides to him that she is scared. Julia tries to stay away from Ned after their recent kiss, but she ends up in his arms. Maggie suspects that something is happening to Will when he begins to act strangely.

Daphne collapses and is taken to the hospital, where she and Charlie are have to decide between a premature birth or Daphne dying. Meanwhile, Sarah and Bailey kick out Will and instead let Hannah stay with them. Sarah is shocked when Bailey gives Hannah money for an abortion.

Owen is upset when all the attention goes to Daphne and Charlie's baby. Daphne is worried about how will she do with the baby and she suspects that everything will go wrong. Bailey moves out of Sarah's apartment. Julie is worried about the consequences of her relationship with Ned.

Owen runs away from Charlie in the mall and the family must look for him. Julia invites Ned to the house for the Thanksgiving Day. Claudia tries to reach to her family, but Daphne keeps on dodging her phone calls.

Charlie has some hard time trying to be there for both Owen and Diana. Bailey fights with the owner of a new restaurant. Julia finds out just how bad Ned's relationship with his parents is. Meanwhile, Claudia wants to go home immediately.

After finding out more about Ned's relationship with his parents and his brother, Julia wants to get closer to Ned's brother. Griffin goes to Boston on a job task and finds Claudia there. Charlie realizes that Daphne isn't really bonding with their daughter.

Ned does his best to keep Julia by himself during the holidays. Daphne's irresponsible mother visits and Daphne realizes just how much she is like her. Bailey has teach him Owen that stealing is wrong.

When Charlie can't take care of him, Bailey takes Owen on a camping trip. Kirsten and Paul talk about adopting a baby. Daphne is still having hard time trying to take care of Diana. Ned convinces Julia to move into his room, but when Maggie talks her out of it, he hits Julia.

A shocked Julia won't talk to anyone about Ned's violent behavior. Griffin tries to get Claudia to join his band, but neglects to asks the other bandmembers. Charlie has a hard time with the fact that Daphne left. Bailey and Sarah are robbed at a restaurant,

Griffin tries to help Julia when he learns about Ned's short temper. Claudia becomes friends with Cody when she decides to loose her naïve image. Kirsten feels that she's ready to adopt a baby. Sarah tries to become friends with Albert, the guy that mugged her.

Julia's ex-boyfriend Justin visits and fuels Ned's jealousy and anger. Kirsten decides to end separate from Paul and turns to Charlie for help. Sarah continues to trust Albert despite Bailey's reservations. Charlie tries to find Daphne.

Determined to find Daphne, Charlie leaves for Los Angeles. Griffin gets no help from Bailey or Charlie when Julia convinces them everything is alright with Ned. Bailey has to choose between his family life with Owen and a new amazing business offer. Cody steals a Valentine's day gift for Claudia.

Bailey finds out that Owen may have a learning disability. Charlie tries to convince Daphne to return to San Francisco. Julia makes Ned see a psychiatrist after she agrees to stay with him if he gets help. Kirsten moves to Chicago with her parents.

Charlie and Baily fight over Owen's custody. After learning of Ned's abuse from Maggie, both Bailey and Charlie try to reason with Julia to break up with him, but she refuses. Sarah finds out that her mother is getting remarried.

Charlie and Bailey continue to fight over Owen's custody while Owen's learning disability grows. With Maggie's help, Griffin whisks Julia away from Ned to convince her to leave him.

The fight between Charlie and Bailey for the custody of Owen continues. After Julia finally breaks up with Ned and moves out of his apartment, he starts stalking her.

Claudia is preparing to celebrate her sixteenth birthday and her only wish is that the whole family gets back together. A city-wide power failure traps Julia and Griffin in an elevator. Paul talks to Charlie about Kirsten and tells him that she belongs to him.

Both Charlie and Julia have to decide on a second chance with their former partners. At Owen's insistence, Bailey thinks about moving back into the Salinger house with him and Sarah. Claudia confides in her former violin coach about her life problems.

As Sarah and Bailey move back to the Salinger house, Charlie and Kirsten's relationship grows as he moves into her apartment. Julia gets close to a visiting female English professor. Claudia's bandmate tries to reunite her with Cody at an R.E.M. concert.

Claudia tries to slow down her new relationship with Cody. Meanwhile, Julia moves closer to her writing professor while Sarah and Bailey move even more away from each other. Charlie tries to talk to Kirsten, but learns that the easy way is not the way he has to go with Kirsten.

Julia spends all her time dating Josh and after a talk with Perry, she realizes just how much she needs some time alone. When Daphne finally shows up in San Francisco, Kirsten feels threatened by her despite Charlie explaining to Daphne that he's with Kirsten now. Sarah has a hard time trying to figure out just what is she wants to do with her life. Bailey decides to buy an engagement ring for Sarah.

Both Sarah and Kirsten accept their marriage proposals from Charlie and Bailey. Daphne has a hard time trying to fit into the new situation, while Sarah has second thoughts about marrying. Claudia tries to get closer to Cody by partying and drinking with his friends. Justin wants to help Julia with her finals, but she seems to be doing just fine on her own.