Collateral damage in this context means things that were unintentionally negatively affected by an unrelated incident. He likely means that group dinners won’t be a thing anymore as it’ll be very awkward or uncomfortable for many now since a couple is no longer together, as a couple in a friend group that later breaks up tends to also split up the friend group as people pick sides. They didn’t intend to cancel group dinners because of it, it was just a negative side effect caused by the divorce.
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