Use
String.Split[
^] to break the lines into the parts on the "|" character:
string[] parts = line.Split('|');
Then (having checked you have enough parts)
string s = "|12:05:41.555 | Hand No.-1 | Code";
string[] parts = s.Split('|');
DateTime time;
if (DateTime.TryParseExact(parts[1], "HH:mm:ss.fff ", CultureInfo.InvariantCulture, DateTimeStyles.None, out time))
{
TimeSpan diff = otherTime - time;
...
}