In the Season 3 finale, Hank, Karen and Becca are packing up to move to NYC, but a series of unfortunate events may put a wrench in those plans...
Hank is plagued by dreams where he's floating peacefully in a swimming pool, while Karen and Becca watch on. However, his anxieties, represented by his University affairs, keep haunting him, reminding him of all of his failures. He tries to quiet them by taking slugs of beer, but it's all he can do just to barely stay afloat...
Everything starts to come to a head when Mia shows up for a surprise visit. She is in town for a reading of 'her' book "Fucking and Punching," which has just been released in paperback. She invites Karen and Hank to the reading because she wants to introduce them to her new boyfriend.
Sue Collini is shutting down the agency because she wants to spend more time with her husband and to finish her memoir. She asks Charlie to be her agent, assuming that as her agent, he will also continue to sleep with her. He accept the professional offer, but declines the sexual proposition, as things are looking up with Marcy, or so he thinks.
Charlie told Hank that he was thinking of reversing his vasectomies (he had 2), wanting to make a baby with Marcy. When he made such a proposition to Marcy, she didn't seem at all interested in the baby-making, just the sex. In fact, when Charlie woke up the next morning after a night of love-making, he found the divorce papers out, already signed by Marcy.
At Mia's reading, Karen and Hank meet her manager, Paul, who they later learn is Mia's boyfriend. Later that evening, Paul engages Hank in conversation about the authenticity of Mia's writing. Apparently Mia is having trouble with her second novel. Hank says he's not surprised, and Paul insinuates that he knows that Mia didn't write Fucking and Punching. Paul explains that when Mia couldn't produce additional pages for the paperback version, he started asking questions, causing Mia to break down and tell him everything. Paul thinks that it might be good for Mia to come clean, as a publicity stunt, which would be better than just fading away completely since she can't actually write. Hank is absolutely horrified.
After another night of haunting dreams, Hank takes Becca out for a morning walk. Hank is very distracted, until Becca tells Hank she has something very important to discuss with him. She divulges that when she last slept over Chelseas, they's snuck out, met up with boys, and she had sex for the first time! Becca wanted to tell Hank first and she became quite emotional telling Hank how much she loved him.
Hank is more determined than ever to protect his family now. He goes to see Mia to try to get her to stop whatever Paul has planned. He pleas with her to protect Karen and Becca, who were like a mother and a sister to her. She sees his perspective, and doesn't want to hurt them, but she is having such a hard time keeping up this facade she has created. Paul comes over and tries to reason with Hank, but he insults Hank's fathering, and gets punched in the face. The two men end up bloody in the pool and Paul threatens to call the police on Hank.
Hank gets home to an almost completely packed up house. Karen is so upset when she sees that he's hurt. The look in Hank's eyes is heartbreaking- he has to tell Karen everything. You don't hear exactly what they say to each, other, as the song Rocket Man plays in the background, but you can see all the emotions they're feeling. Karen runs out of the house and Hank chases after her.
As promised, Paul has called the police - they drive up and pull Hank off Karen. He gets taken away in handcuffs as an unaware Becca sees the whole thing. She tries to run to him, but her sobbing mothers takes her into her arms.
Cut to the dream motif, where Hank is chugging a bottle of wine in the pool and just crashes under the water's surface.