Collateral damage is damage that happens accidentally, or generally alongside some bigger damage.
It’s frequently used in terms of military strikes – an attack on a platoon of soldiers might cause collateral damage to a building that they holed up in. The building wasn’t the target, but it got wrecked nonetheless.
In your case, your friends got divorced and their relationship blew up. Then because of that, your social life was damaged. Weekly dinners surely weren’t part of the divorce proceedings, but they were damaged in their “fight” regardless.
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