Why should you have to get a lawyer if the neighbor refuses to abide by the town's ruling? The town should be taking him to court since the fence is illegal. If they don't do that and he doesn't move the fence, pull out whatever part of it is on your property and throw it on his side. You could likely keep/sell whatever you pull out since it is on your property but that is likely way more confrontational they you want to be (I wouldn't probably do that either). He can't complain and you wouldn't have to pay a lawyer. Mark the property line with some T posts. Not too expensive nor hard to put in.
Seems like it would be hard to have 2 fences ON the property line.
Find out if your state allows you to recover lawyer's fees (mine does not). There is no question that he'll have to move the fence if you sue him and if he knows fighting you will cost him $$ he's less likely to do it. Lawyers are expensive.