Virtual cutting of deformable objects is at the core of many applications in interactive simulation for computational medicine. We present a new remeshing algorithm simulating cuts based on the finite element method. For tetrahedral elements with linear shape tunctions, we combined our algorithm with the movement of the nodes on the cutting surface, called snapping. Our approach shows benefits when evaluating the impact of cuts on the number of nodes and the numerical quality of the mesh. The remeshing algorithm yields similar results for quadratic elements. However, the snapping of nodes entails higher challenges and has been evaluated on triangular elements, simulating fractures. For augmented reality applications, we are the first to present results on the detection of fractures, tearing and cutting from a monocular video stream. Examples in different contexts show the robustness of our algorithm and the augmentation of internai organ structures highlights the clinical interest.