Cracks situated parallel to, and very near, the interface in layered, ductile-brittle composite specimens were investigated with finite-element analysis. Elastic, plastic and thermal properties previously obtained from experiments were utilized in the model. A routine was employed for automatic crack extension and remeshing, enabling simulation of incremental crack propagation. The elastic, thermal and plastic contributions to crack propagation behavior were investigated, along with the variation of these with crack length and crack-tip position. Thermal residual stresses are shown to have a large influence on crack path, although this is mitigated to some extent by plasticity. The implications on the inherent reliability of joints and layered materials containing brittle constituents are discussed.