We present a simplified spherical harmonics approximation for the time-domain radiative transfer equation including the source-divergence effect. This leads to a set of coupled partial differential equations (PDEs) of the parabolic type that model diffuse light propagation in biological-tissue-like media. We introduce a finite element approach for solving these PDEs, thereby obtaining the time-dependent spatial profile of the fluence. We compare the results with the diffusion equation and Monte Carlo simulations. The fluence obtained via our model is shown to reproduce well the Monte Carlo results in all cases and improves on the solution of the diffusion equation in homogeneous diffusive-defying media. Our solution also shows more sensitivity than the diffusion equation to changes in the absorption coefficient of small inclusions.