IMHO I've always been a subscriber to the theory that there isn't some kind of deep rooted reason as to why Terrence acts the way he does.
The kind of antagonistic behavior on display on the show is just a common thing that often occurs amongst older and younger siblings, regardless of the situation at home. (Of course being a Cartoon and all, what happens on Foster's is ramped up greatly for full comedic/dramatic effect.)
Sibling rivalry is just as common in a two parent household as it is in a single parent household. (I am sure many people, will be able to back up that assertion.)
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