  Coalescing neutron star binaries are believed to be the most reliable sources
for ground-based detectors of gravitational waves and likely progenitors of
short gamma-ray bursts. In the process of coalescence, magnetic fields of
neutron stars can induce interesting observational manifestations and affect
the form of gravitational wave signal. In this papaer we use the population
synthesis method to model the expected distribution of neutron star magnetic
fields during the coalescence under different assumptions on the initial
parameters of neutron stars and their magnetic field evolution. We discuss
possible elecotrmagnetic phenomena preceding the coalescence of magnetized
neutron star binaries and the effect of magnetic field on the gravitational
wave signal. We find that a log-normal (Gaussian in logarithms) distribution of
the initial magnetic fields of neutron stars, which agrees with observed
properties of radio pulsars, produces the distribution of the magnetic field
energy during the coalescence that adequately describes the observed luminosity
function of short gamma-ray bursts under different assumptions on the field
evolution and initial parameters of neutron stars. This agreement lends further
support to the model of coalescing neutron star binaries as progenitors of
gamma-ray bursts.
