Continuity mistake: When Al comes home, he finds a written message from Peg saying that she, Kelly and Bud are at Marcy's house performing the Village People. However, Peggy couldn't have written the message because when they agreed to play the Village People, they went over to Marcy's immediately. (00:04:50 - 00:06:10)
Continuity mistake: When the chain is cut with Marcy by Al to release him from the pole, later in the newscast in the background they are showing the cut chain. When on the news, it shows the chain was cut about a foot from the goal post. However when you watch the guy cut the chain for real, he cuts it flush with the pole.
Answer: It's implied that Steve filed for divorce since in s04e16, "You Gotta Know When to Hold 'Em", Marcy says that Steve is suing for alimony. Alimony is something that has to be requested when filing for divorce. Although the show doesn't spend time on the actual legal proceedings of their divorce.
Bishop73