Earthquake fault zones are more complex, both geometrically and rheologically, than an idealized infinitely thin plane embedded in linear elastic material. To incorporate nonlinear material behaviour, natural complexities and multi-physics coupling within and outside of fault zones, here we present a first-order hyperbolic and thermodynamically compatible mathematical model for a continuum in a gravitational field which provides a unified description of nonlinear elasto-plasticity, material damage and of viscous Newtonian flows with phase transition between solid and liquid phases. The fault geometry and secondary cracks are described via a scalar function xi is an element of [0, 1] that indicates the local level of material damage. The model also permits the representation of arbitrarily complex geometries via a diffuse interface approach based on the solid volume fraction function alpha is an element of [0, 1]. Neither of the two scalar fields xi and alpha needs to be mesh-aligned, allowing thus faults and cracks with complex topology and the use of adaptive Cartesian meshes (AMR). The model shares common features with phase-field approaches, but substantially extends them. We show a wide range of numerical applications that are relevant for dynamic earthquake rupture in fault zones, including the co-seismic generation of secondary off-fault shear cracks, tensile rock fracture in the Brazilian disc test, as well as a natural convection problem in molten rock-like material. This article is part of the theme issue "Fracture dynamics of solid materials: from particles to the globe".