Does the hand brake drum slide off the driveshaft retaining studs or is it held by the transfer box rear sharf nut?
You have to remove and discard the axle spindle nut. Then you can use a brass hammer to help break the drum loose. It should pull right off once you break the dirt and/or rust "seal". Make sure you get a new spindle nut first ($3-5 at a discount parts store), you have to "spike" the nut after it's snugged up to hold it in place, and you can NOT safely reuse the old one.
To remove most brake drums, you must first release the emergency brake. After that you can tap on the edge of the drum in several places around it to free it from the shoes. You might also have to wiggle the drum many times to get it to release from the shoes.
Another method is...some drums have a threaded hole into which you screw a bolt and start tightening. This will make the drum push away from the wheel flange and usually remove the drum.
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Hand brake assembly is on the rear of the transfer case. Do I remove the transfer shaft nut or is the drum only held by the rear drive shaft nuts?
Thank you. its been so long since I assembled the transfer case I hand forgotten and not want to muck around.
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