Back in Nashville, Rayna's girls have prepared a cake for her that says "Welcomehome MOM." Teddy sees it and says that chocolate is his favorite. Well it doesn't matter because it's NOT YOUR CAKE, ass. Maddie gives Daphne grief for spelling "Welcomehome" as one word, because apparently Daphne is developmentally delayed as well. Maybe she's secretly Scarlett's child? How much further can this house of lies crumble? As the girls talk about how to fix the cake (and the whole thing seems like Daphne's ploy to get to eat more frosting), Teddy appears to get at least a half pang of guilt.
Meanwhile, a frustrated Avery is in the studio recording, while Dominic listens via phone. That's one way to do it, I guess. With Dominic on speaker phone, Avery complains that he's reaching for a sound that just isn't his. Dominic notes that Avery is just out of his comfort zone, before ordering him to just do what he says. Avery takes a break to cool off, and who should be skulking around outside of the studio but Gunnar's ex-girlfriend Hailey. Wow, who ever thought that she'd show up again? Does this mean we're eventually going to have to deal with the return of Carmen, too? And the ghost of Vince? Hailey has apparently been in touch with Avery about a publishing deal. He says he's in no position to give up control of his publishing rights, but she says that they're offering him a co-pub deal, which is 50/50, and there would be a good chance of a six figure signing bonus. He says he has to run it by Marilyn, and Hailey in turn wants to talk more over drinks. And you know how much Avery 1) listens to Marilyn; 2) could use a free drink right now.
And THEN. Teddy continues his trajectory of being an idiot by giving Peggy a call from inside his house, while the girls are also there. She's in bed with a lit candle, and probably a bottle each of pills and vodka in the nightstand. Teddy apologizes for not being in touch since they did it in the shadow of her beret, and Peggy is totally expecting him to say they can't see each other again. Instead, he shocks her by telling her that he asked Rayna for a divorce. Peggy manages to sit up for probably the first time in weeks, stops sawing at her wrist with a butter knife, and says, "That must have been hard." Yes, for us, the viewers, who were looking forward to finally seeing Rayna have hot sexytimes with Deacon! Peggy wants to know what she can do to help, after Teddy tells her that they're planning on telling the kids about the divorce the next day. He just wants her to talk to him, especially since they probably won't be able to see each other for a while, unless she's giving him a beej in the car right under a sign that says "Paparazzi Parking Lot." Maddie walks in to tell Teddy about a broken bowl, and gets quiet once she realizes he's on the phone. She overhears him telling Peggy that it just feels right being with her, with Teddy being stupid enough to say Peggy's name. Maddie closes the door and looks sad. Well, this experience should toughen her up for the moment when she has to go on Maury and learn about her true paternity.