You have to pull the transmission to pull the converter, so you might as well drop the transmission out to weld it. If you have a spare block, I'd bolt it up to keep it aligned for welding.
As rusty as that piece is, I think it's been broken for a while. Your only mistake is not spotting it after you pulled the engine.
Is your transmission anything special? Is it recently rebuilt? Is there any reason you wouldn't just toss it aside and throw in a junkyard transmission or a fully built transmission? If not, I'd toss it. If you do a transmission rebuild, about half the parts inside get replaced. I think the case is the most valuable part.
Yep. If it was a big buck trans I wouldnt hesitate to try and weld it.
If the bellhousing doesnt have any other cracks running out from the break you could grind a bevel on both sides of the break and bolt it back to the block and bolt the broken part back in place.
Heat it all with a rosebud and lay a few 1 inch stitch root passes and let it get cold.
Backgouge and rosebud again and fill the stiches and let it cool, etc...
Pretty much an all day heat and cool multi pass weld
It has to bolted up just to keep it all flat and true.
If you try to weld that back with the trans loose its very difficult to keep that chunk from moving around and just a little bit off can cause it to snap again when you torque it.
All of this requires a pretty good mig and, unless you really hate life, a spool gun.
And some experiance welding cast aluminum
Its one of those situations where you can probably make it work with about a 3 grand investment.
But it isnt worth paying someone else to do it.
And, even if it does all work out, You still have a case that isnt worth rebuilding.