Ice shelves play a major role in buttressing ice sheet flow into the ocean, hence the importance of accurate numerical modeling of their stress regime. Commonly used ice flow models assume a continuous medium and are therefore complicated by the presence of rupture features (crevasses, rifts, and faults) that significantly affect the overall flow patterns. Here we apply contact mechanics and penalty methods to develop a new ice shelf flow model that captures the impact of rifts and faults on the rheology and stress distribution of ice shelves. The model achieves a best fit solution to satellite observations of ice shelf velocities to infer the following: (1) a spatial distribution of contact and friction points along detected faults and rifts, (2) a more realistic spatial pattern of ice shelf rheology, and (3) a better representation of the stress balance in the immediate vicinity of faults and rifts. Thus, applying the model to the Brunt/Stancomb-Wills Ice Shelf, Antarctica, we quantify the state of friction inside faults and the opening rates of rifts and obtain an ice shelf rheology that remains relatively constant everywhere else on the ice shelf. We further demonstrate that better stress representation has widespread application in examining aspects affecting ice shelf structure and dynamics including the extent of ice mélange in rifts and the change in fracture configurations. All are major applications for better insight into the important question of ice shelf stability.