Is Presence of advocate is mandatory ?

If the husband's lawyer  is demanding an exorbitant amount, then the respective party can terminate the vakalatnama given to his/her advocate and inform the court about it and proceed with the permission sought to dispose the case on the basis of the settlement agreement arrived between both the parties. 

No problems will be there in future too.

Yes, the vakalatnama could be withdrawn at the discretion of the litigant and he//she can appear in person.

Yes, husband and wife can appear and make compromise before court without their Advocates.

Replace the lawyer,.

It is not mandatory to engage a lawyer to present your case before the Court.

However, it is better to have professional services of a lawyer to protect interest of both the parties and proceed as per law, which may not be got done without aid of a lawyer. 

noo need for any advocate when parties are ready to submit compromise in court