4matic. Can I ignore the problem?

On a 1992 Mercedes 300TE (150,000 miles) that has a non-functioing 4matic transmission, will there be any damage or other concerns if the unit fails and you continue to drive the car only on rear wheel drive?
I know this is an expensive repair. I really don't mind 2 wheel drive only. Can I get away with not fixing the transfer case?
--Scott
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