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Dillon willing to sign off on divorce.

Joe Exotic's estranged husband Dillon Passage is willing to sign off on divorcing the 'Tiger King,' but he wants to work out a settlement first.

Dillon's attorneys, Chris Kirker and Holly Davis, tell TMZ … their client is eager to finalize the divorce, as long as Joe agrees to his terms.

His legal team says they actually started negotiating a divorce settlement back in September with Joe's previous lawyer when DP and Exotic were already estranged ... but they hit pause on moving forward when Joe announced his cancer diagnosis. As we first told you ... Joe ended up filing for divorce last week after more than 4 years of marriage, saying he wants to make their split official so he can marry his new prison lover.

Joe's new divorce attorney, Autumn Blackledge, tells TMZ … Joe wants to hammer out a deal, and it shouldn't be a problem, as long as Dillon's terms are "reasonable." As for his terms -- Dillon's attorney says he wants both parties to walk away with what they owned coming into the marriage ... and he wants a permanent injunction preventing Joe from contacting him directly, stalking or harassing him.

Dillon's camp says those are the terms they offered back in September, when Joe's response was, "It will be a cold day in hell before I sign these papers ... You're out of your f***ing mind."

Sounds like it's gonna take some doing to reach a settlement, but Dillon's team stresses he's not looking for any big payday -- and Joe's camp says he wants something simple that allows each of them to take their own stuff and move on.

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