If you are represented by an attorney, the question will arise whether your attorney should attend the divorce mediation with you. This is something you'll work out with the mediator, your attorney, your spouse, and your spouse's attorney. Very often, family law mediation sessions involve just the divorcing spouses and the mediator. This keeps costs down and ensures that you and your spouse do the talking and make the decisions (lawyers have a tendency to take over when they are present).
It depends on how bad it is. Half of the divorce cases out there involve one or the other party being on anti-depressant medications, so that in and of itself won’t matter much. It really depends on how severe the mental illness is, and how it affects your parenting. If the mental illness negatively affects your parenting, or poses a danger of harm to the children, that will obviously be more relevant. And unless your mental health records are already sufficient for a custody evaluator to assess your mental health, you can expect that a custody evaluation will include a psychological evaluation as well.

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Having said that, children naturally wonder and ask questions to resolve their own anxiety at a time when their parents have split up, and their family unit and daily routines have dramatically changed. Simply proceed with sensitivity, and be careful not to place the children in the middle of any disputes. Say nothing that would burden them with any guilt, or put them in the position of having to take sides.
Notwithstanding all of the above, mediation can often be the process that helps break an impasse and result in a reasonable settlement of one’s case. But for mediation to work, both parties must be prepared to compromise. If you approach mediation with the attitude that it will be an opportunity to convince the other party to do things your way, mediation will likely fail. That said, be careful not to concede too much. A lawyer can give you an appreciation for where the line is between generous cooperation and foolish capitulation.
A divorce can get complicated if the parties have property (real estate, automobiles, vacation property, pensions, jewelry, etc.) or minor children. Usually, the divorce can be done more quickly if the spouses agree on how to divide the property and handle custody and parenting time with the children. Many cases start out with a lot of disputes, but then the parties are able to reach an agreement. Parties often reach agreement after using alternative dispute resolution (ADR) services outside of court. NOTE: If you feel threatened by or unsafe with the other party, you may want to get legal advice or help from an advocate before using ADR.
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