Hypervelocity impact dynamics is the theoretical support of spacecraft shielding against space debris. The numerical simulation has become an important approach for obtaining the ballistic limits of the spacecraft shields. Currently, the most widely used algorithm for hypervelocity impact is the smoothed particle hydrodynamics (SPH). Although the finite element method (FEM) is widely used in fracture mechanics and low-velocity impacts, the standard FEM can hardly simulate the debris cloud generated by hypervelocity impact. This paper presents a successful application of the node-separation technique for hypervelocity impact debris cloud simulation. The node-separation technique assigns individual/coincident nodes for the adjacent elements, and it applies constraints to the coincident node sets in the modeling step. In the explicit iteration, the cracks are generated by releasing the constrained node sets that meet the fracture criterion. Additionally, the distorted elements are identified from two aspects – self-piercing and phase change – and are deleted so that the constitutive computation can continue. FEM with the node-separation technique is used for thin-wall hypervelocity impact simulations. The internal structures of the debris cloud in the simulation output are compared with that in the test X-ray graphs under different material fracture criteria. It shows that the pressure criterion is more appropriate for hypervelocity impact. The internal structures of the debris cloud are also simulated and compared under different thickness-to-diameter ratios (t/D). The simulation outputs show the same spall pattern with the tests. Finally, the triple-plate impact case is simulated with node-separation FEM.